In this photo illustration, a one-ounce gold bar, a gold nugget, and gold coins are displayed at Witter Coins on Oct. 7, 2025 in San Francisco, California.
Justin Sullivan | Getty Images
J.P Morgan famously said in his 1912 congressional testimony that “Gold is money, everything is credit.”
It seems unsurprising then that many investors seem to be fleeing from credit and are parking their wealth in gold instead, which sent the prices of the yellow metal crossing $4,000 for the first time.
Bridgewater Associates founder Ray Dalio said investors should allocate as much as 15% of their portfolios to gold in a market that he said is comparable to the early 1970s — when factors like high debt, and monetary uncertainty eroded confidence in paper assets and fiat currencies.
Some may be tempted to quote Warren Buffett as a counterpoint, who was famously skeptical on the utility of gold.
In 1998, Buffett said that “[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
Martians may be scratching their head, but earthlings are not, and are scrambling over one another for the glittery stuff.
What you need to know today
Gold crosses $4,000 mark for the first time. That comes as investors seek a safe haven from a weaker dollar, geopolitical volatility, economic uncertainty and stubborn inflation.
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And finally…
NEW YORK, NEW YORK – MAY 22: Ray Dalio, Founder and CIO Mentor, Bridgewater Associates speaks onstage during The Wall Street Journal’s 2024 The Future Of Everything Festival at Spring Studios on May 22, 2024 in New York City.
Dia Dipasupil | Getty Images Entertainment | Getty Images
Ray Dalio says today is like the early 1970s and investors should hold more gold than usual
Bridgewater Associates founder Ray Dalio said investors should allocate as much as 15% of their portfolios to gold even as the precious metal surged to an all-time high above $4,000 an ounce.
Dalio’s recommendation contrasts with typical portfolio guidance of financial advisors which tells clients to hold mostly stocks and some bonds in a 60-40 split.
Alternative assets like gold and other commodities are usually suggested to be a low single-digit percentage of any portfolio because of the lack of income they generate.
— Yun Li