Billionaire Ray Dalio Says Gold Is Replacing Debt as the World’s Real Currency
Billionaire investor Ray Dalio believes gold’s record-breaking rally is no coincidence. Speaking at the Greenwich Economic Forum, the Bridgewater Associates founder said the precious metal’s rise signals a deeper shift in global finance - one where debt loses dominance and tangible assets reclaim value.
Dalio urged investors to hold around 15% of their portfolios in gold, far above the typical 5-7% suggested by major banks. He described gold as “the only reliable hedge when everything else depends on credit,” arguing that inflation, rising debt, and waning trust in fiat money are rewriting the rules of wealth preservation.
Central Banks Lead the Way
With U.S. debt nearing $38 trillion, Dalio noted that central banks are quietly reducing their exposure to bonds and replacing them with gold. “We’re seeing a gradual shift in reserve behavior,” he said. “Gold is functioning as the second-largest currency in the world.”
That view echoes growing unease across Wall Street. Citadel’s Ken Griffin recently warned that gold’s surge reflects investors’ discomfort with U.S. sovereign risk and an accelerating push to de-dollarize portfolios. “People are betting on America’s companies but hedging against its balance sheet,” Griffin said.
Echoes of the 1970s
Dalio compared the current environment to the 1970s, when inflation and currency devaluations forced a global reset. Back then, gold emerged as a symbol of financial survival – a role it seems to be reclaiming today. With the U.S. debt-to-GDP ratio above 125%, he warned that “growth can’t outpace debt forever,” and investors are again seeking assets governments can’t print.
Even as risk assets outperform, gold’s quiet momentum is proving hard to ignore. Institutional demand and retail inflows into gold ETFs have surged, turning the metal into 2025’s defining safe haven. Dalio called it “a return to reality,” adding, “Every few decades, the world remembers what money really is.”
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
