Ray Dalio Urges Investors to Hold Gold, Warns of US Markets’ ‘Heart Attack’

Billionaire investor Ray Dalio told an Abu Dhabi Finance Week panel that surging U.S. debt costs are creating what he described as a financial "heart attack" for American markets and urged investors to hold 10% to 15% of their portfolios in gold as protection.

Dalio, the founder of Bridgewater Associates, said at the panel that higher costs of servicing government debt are constraining other spending in the economy in a manner he compared to plaque building up in arteries. "A doctor would warn of a heart attack," he said, adding that gold is "uniquely uncorrelated with other assets" and "tends to rise in crises when other assets fall."

Dalio’s comments come as gold trades near record highs and as investors weigh competing signals from equity markets and fixed-income pressures. Spot gold was reported at $3,641.10 per ounce on Thursday morning, up nearly 40% year-to-date, while gold futures opened at $3,680.60 an ounce, putting the commodity on track for its strongest annual gain in decades.

The Bridgewater founder, who stepped down from active management at the hedge fund in 2022 and sold his remaining stake this summer, has repeatedly advocated gold as insurance against currency debasement, rising debt and geopolitical risk. He urged investors to "reassess the safety of their holdings in a world abundant in debt" and asked rhetorically, "Whose money do you own?"

Standard Chartered CEO Bill Winters, a fellow panelist, echoed concerns about fiscal pressures, saying Europe faces similar constraints and that markets have at times provided "more severe constraints than the U.S."

At the same time, major U.S. equity benchmarks have continued to advance. The S&P 500 rose about 11% this year and the Nasdaq about 13%, both closing at record highs on Wednesday after softer-than-expected inflation data raised hopes of a Federal Reserve rate cut next week. Europe’s STOXX index has gained just over 8% in 2025.

Analysts and market participants point to several factors driving demand for gold, including expectations of easier Fed policy, geopolitical flashpoints from Ukraine to Taiwan, and concerns about U.S. fiscal sustainability. Central banks have also been significant buyers this year, diversifying reserves away from the dollar. IMF data show that China, India and Russia increased their official gold holdings in 2025.

Historical episodes underscore gold’s role in market stress: in 2008 bullion rose more than 5% while the S&P 500 plunged nearly 40%, and in 2020 gold exceeded $2,000 an ounce amid the pandemic-driven selloff. Dalio has invoked those precedents in public statements stretching back to 2019, when he urged investors to "buy gold" during a period he described as a "paradigm shift" of money printing and growing debt.

"Gold remains the ultimate insurance policy," Dalio said on the panel, framing the metal as a hedge against policy-driven currency weakness and geopolitical uncertainty. He recommended that investors consider a dedicated allocation to bullion to protect portfolios against unexpected shocks.

Market observers noted that while gold's rally signals a move by some investors to hedge, the simultaneous advance in equities reflects continued support for risk assets amid hopes for lower interest rates. The divergence underscores the complex positioning of global investors as they balance growth expectations, monetary policy outlooks and long-term fiscal concerns.

Dalio’s advocacy adds to a long-running debate among investors over the appropriate role of gold in diversified portfolios. With prices approaching multi-thousand-dollar levels, the debate centers on whether bullion is insurance worth the cost amid years of rising asset prices and whether central bank demand will sustain elevated prices.

For now, Dalio’s prescription is clear: in a world he describes as "abundant in debt" and exposed to political and economic stresses, a meaningful allocation to gold can serve as a defensive measure against market shocks and currency depreciation.