What these Two Titans of Finance are Saying about Gold Now
Ray Dalio is arguably the most influential hedge fund manager – and his reputation for prescience and market insights are only outmatched by legends like Benjamin Graham or Warren Buffett himself.
Jeffrey Gundlach is known as the “Bond God” for his expertise running a bond-focused fund, and his successful predictions in that space.
This week, both of these billionaire investment experts came out as bullish on gold.
Dalio told CNBC that investors should have up to 10% of their portfolios in gold. Gundlach recently said that a 25% allocation into gold would not be excessive.
If you’ve been a gold investor for as long as I have, you know these allocation recommendations aren’t just large… they’re unprecedented. And today, almost nobody has anything close to 10% allocation into gold… let alone 25%.
Despite gold’s significant rise in global allocations since 2021 (from under 3% to nearly 5% today) gold is still a tiny part of investment portfolios.
And it’s not just because the price of gold is up: we know that central banks have been buying gold hand over fist for a decade or more.
In the last three years alone, central banks bought over 1,000 tonnes each year – amounting to about 25% of all gold mined in each year.
As is typical, the investment public is slowly coming around to take notice of this massive trend.
You do have to wonder: if central bank buying and two of the world’s most famous and successful investors being bullish on gold doesn’t get people to wake up to this bull market, what will?
It might take Buffett himself buying gold stocks, which is something I’ve been talking about for almost a year. I think by then, the cat will be out of the bag.
You might be wondering, why are Dalio and Gundlach ringing the alarm now for gold? Why not a year ago or 10 years ago, when gold was much less expensive?
I think it’s because they were both optimistic about the ability of central bankers to manage their fiat currencies and for governments to control their budgets.
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Today, that position just isn’t realistic. Today, both Dalio and Gundlach see what I see: a future of inflation, currency devaluation and eventually, a wake-up call that gold (and silver) are money.
With gold allocations still under 5%, very few people have heard that wake-up call.
But you have. All you need to do is stay the course and stay tuned.
Best,
Garrett Goggin, CFA
Chief Analyst & Founder, Golden Portfolio