Dalio Urges Investors to Allocate Up to 15% of Portfolios to Gold Amid Debt Risks

Bridgewater Associates founder Ray Dalio recently shared his views on portfolio allocation, suggesting that investors shift between 10% to 15% of their portfolio into gold and reduce bond exposure. This recommendation is based on Dalio's framework, which starts with the arithmetic of government borrowing.

In a LinkedIn post from August 21, 2026, Dalio explained that when a country's debt grows faster than its economy, interest payments consume a larger share of the budget each year, squeezing out other spending. To keep issuing new bonds at acceptable prices, governments may have to offer higher yields or lean on central banks to absorb supply through money creation.

This is where gold enters Dalio's framework. Once investors sense that a currency's issuer is monetizing debt, confidence in that currency and its associated bonds begins to slip. Assets whose supply cannot be expanded by policy decisions, such as gold and Bitcoin, become relatively more attractive.