A billionaire talks about gold .. Should we buy it?

American billionaire Rai Dalio, founder of Bridge Water Associated, has called on investors to allocate up to 15% of their gold investment portfolios, despite its high prices to unprecedented levels exceeding $ 4,000 per ounce.

Dalio said, during the GNTICO Economic Forum in Connecticut, that gold is a “excellent diversification tool” in light of global markets, explaining that “allocating 15% of the portfolio to gold is completely logical from the perspective of distribution of assets, because it is one of the few assets that perform well when the rest of the wallet ingredients decline.”

Gold has increased by more than 50% since the beginning of the year, with the increasing demand for safe havens, amid the escalation of financial deficit and geopolitical tensions. Dalio likened the current economic situation to the 1970s, when inflation and debt burdens led to the loss of confidence in paper currencies.

He added: “When you keep your money in the tools of debt among this huge amount of debt, you do not actually maintain your wealth,” stressing that gold “remains the only origin that you can own without relying on anyone to pay its value.”

Dalio’s recommendation contradicts the traditional model 60/40, which depends on stocks and bonds, as he sees that alternative origins such as gold deserves greater weight in the current governor.

Jeffrey Gondlash, CEO of Double Line Capital, recently recommended raising the gold share to 25% of the portfolio, expecting the precious metal to continue in light of inflationary pressures and the weakness of the dollar. (CNBC)

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