Billionaire investor Ray Dalio has advised investors to allocate approximately 15% of their portfolios to gold or Bitcoin, citing growing concerns over the devaluation of fiat currencies and escalating global debt levels. The founder of Bridgewater Associates shared his insights during a recent appearance on the Master Investor Podcast in July 2025, emphasizing these assets as crucial hedges against economic instability. "If you were neutral on everything and optimizing your portfolio for the best return-to-risk ratio, you would have about 15% of your money in gold or Bitcoin," Dalio stated.
Dalio's recommendation stems from his view that the global financial system is entering a "classic devaluation" scenario, reminiscent of the 1930s or 1970s, where traditional fiat currencies are expected to decline against hard assets. He highlighted the unsustainable trajectory of U.S. debt, which he noted stands at six times annual revenue, requiring an estimated $12 trillion in new debt issuance over the next year. This fiscal burden, Dalio suggests, poses significant risks to the purchasing power of conventional money.
While advocating for both assets, Dalio expressed a strong preference for gold over Bitcoin, citing gold's historical role as a reserve asset and its ability to flow freely between countries. He noted that gold is the second-largest reserve currency globally after the U.S. dollar and offers a more "private" way of holding wealth compared to Bitcoin, which he believes central banks are unlikely to adopt due to transparency and regulatory concerns. Dalio clarified that he holds both assets but maintains significantly larger gold positions.
The advice underscores a broader trend among investors seeking diversification and protection against macroeconomic uncertainties. Dalio's strategy aims to provide a buffer against inflation and fiscal shocks, positioning gold and Bitcoin as essential components for capital preservation in an unpredictable economic climate. His insights align with a cautious yet forward-looking approach to portfolio management, acknowledging the limitations of traditional financial systems.