Ray Dalio, the billionaire investor and former Bridgewater Associates CEO, is holding onto gold as a hedge against risks related to higher inflation and a potential debt crisis. Dalio highlighted the growing debt balances worldwide, including the U.S. debt reaching $34 trillion for the first time. He warned that when nations are heavily indebted, central banks tend to print more money, leading to devalued currencies and potential inflation.
In contrast, gold, being a non-debt-backed form of money, is seen as a safer asset during times of high debt. Dalio sees gold as a good diversifier in his investment portfolio, given the current high debt levels globally. Gold prices have been rising recently, driven by concerns over recession, persistent inflation, and geopolitical tensions. Dalio has previously warned about a looming debt crisis in the U.S., which could trigger a balance sheet recession.
