Gold slides below the $1850 mark in quiet trading
Bridgewater’s Dalio says, ‘you have to have a certain amount of gold in your portfolio’

(USAGOLD – 5/26/2022) – Gold slid below the $1850 mark in quiet trading as financial markets processed yesterday’s Fed minutes and braced for tomorrow’s PCE Index report. It is down $8 at $1848. Silver is down 8¢ at $21.99. Ray Dalio, who heads up Bridgewater Associates with $160 billion under management, recommends a well-diversified portfolio as the best approach to the current economic upheaval. “You have to have balance,” he told CNBC in an interview at the Davos conference, “and I think you have to have a certain amount of gold in your portfolio.” As CNBC points out, that recommendation echoes his call three years ago that “the precious metal will be a top investment in the years to come.”

“[T]hose that will most likely do best will be those that do well when the value of money is being depreciated and domestic and international conflicts are significant, such as gold,” he said in an advisory posted at Linked-In in July 2019. “Additionally, for reasons I will explain in the near future, most investors are underweighted in such assets, meaning that if they just wanted to have a better-balanced portfolio to reduce risk, they would have more of this sort of asset. For this reason, I believe that it would be both risk-reducing and return-enhancing to consider adding gold to one’s portfolio. I will soon send out an explanation of why I believe that gold is an effective portfolio diversifier.” At the time of that Linked-In post, gold was trading in the $1400 range.

bar chart showing the long term performance of gold against a range of competitive assets
Chart courtesy of the World Gold Council • • • Click to enlarge

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