Ray Dalio: Gold and non-fiat currencies to gain as global debt pressures weigh on major currencies

[Gold]
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Bridgewater founder Ray Dalio said Friday that gold and non-fiat currencies will gain strength as major currencies weaken under growing global debt pressures.

Speaking at the FutureChina Global Forum 2025, Dalio warned that the excessive spending and spiraling debt [https://seekingalpha.com/article/4794536-the-us-debt-crisis-is-more-serious-than-recent-economic-data] by the U.S. government have become “unsustainable” and that the world’s largest economy is facing a major fiscal crisis that will put its monetary order at risk, _CNBC _reported.

“We are going to see non-fiat currencies become more important store of wealth and money,” said Dalio, urging investors to diversify their assets with around 10% of their portfolio in gold.

He estimated, without giving a timeline, that the government needs to sell an additional $12 trillion in debt to be able to cover the $2 trillion deficit, $1 trillion of interest payment and roll-over of $9 trillion in maturing borrowings.

Dalio added that he proposed to lawmakers in Washington to reduce the fiscal deficit to 3% of its gross domestic product, but politicians on both sides of the aisle have been reluctant to balance the debt level, the report said.

Gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) is enjoying [https://seekingalpha.com/news/4495032-gold-prices-surge-to-record-highs-as-investors-seek-safe-haven#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] its biggest rally in decades, climbing 40% this year, and the surge marks the sharpest annual increase since 1979, when inflation fears drove a global rush into precious metals.

Loose monetary policy and a weakening USD benefit precious metals, especially gold and silver, making them top picks for investor portfolios. [https://seekingalpha.com/article/4794536-the-us-debt-crisis-is-more-serious-than-recent-economic-data]

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