Ray Dalio predicted gold and non-fiat currencies would gain strength as a store-of-value asset. The founder of Bridgewater did not explicitly mention crypto, but focused on demand for safe-haven investments.
Ray Dalio, hedge fund manager and founder of Bridgewater, predicted gold and non-fiat currencies would face increasing demand as a store of value. He noted fiat currencies may be facing debt pressures, pushing a flight to safe-haven investments.
‘We are going to see non-fiat currencies become a more important store of wealth and money,’ said Dalio, suggesting investors may allocate up to 10% of their portfolios to gold. The safe-haven sentiment already pushed gold over $3,700 per ounce.
Dalio did not specifically mention crypto or BTC, though multiple coins are non-inflationary and BTC aims to act like sound money.
Dalio: All fiat currencies will lose their appeal
Dalio spoke at the FutureChina Global Forum 2025, warning about excessive spending and a debt spiral, leaving the US Government unsustainable, potentially facing a major fiscal crisis. Based on growing inflation and uncertainty, fiat currencies will not be suitable for a store of value.
Dalio urged investors to diversify, allocating up to 10% of portfolios to gold. The recent warning coincides with a recent trend of concerns with mortgage payments, as Cryptopolitan reported.
Dalio noted the risks are not limited to or unique to the USA, but may affect other countries, like France, Japan, and China.
The dollar index fell by 10% for the year to date, though other currencies have lost their positions against gold, leaving the metal acting as a reserve currency. | Source: TradingView
The dollar index has indeed shown a dramatic 10% drop in the year-to-date. However, other currencies have also weakened against gold, making the precious metal the second-largest reserve currency globally.
During this period, gold, S&P500, and BTC were all rising in unison, as traders looked for an offset to inflation and sources of active growth, as well as security. BTC has gone through periods where it behaved more like a risky tech stock, but is also growing its influence as a store of value.
Beyond crypto, there are a few non-fiat assets that could fit the description. Silver has also expanded to its highest level since 2011, and is expected to break out above $50 for the first time in history. While the hype for silver lags behind gold, the metal has received attention as an alternative.
The USA may face low demand for new debt
Despite record index performance, Dalio believes overspending is catching up with the US economy. He estimated that the government would need to place another $12T in debt to cover the growing deficit, interest payments, and roll-over of previous maturing debt.
However, the global market does not have this type of demand for US debt, creating an imbalance.
The dollar remains a highly active medium of exchange, boosted by global trade, with few competitors emerging at this stage. Dalio noted the rising role of the Yuan may take some shine off the dollar, but not challenge its primacy.
