Ray Dalio believes gold deserves a significant portion of a portfolio, saying the precious metal remains attractive even at record highs. “Gold is an effective diversifier, which means that if you take a typical mix of assets and have a specific problem, an optimal portfolio would have about 10% or more gold in it,” Dalio said on CNBC’s “Money Movers” on Tuesday. Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, believes gold should make up more than a tenth of a portfolio if investors have an unbiased view of the market. @GC.1 YTD Mountain Gold Futures “If you’re neutral, gold is a relatively attractive asset with low holdings near market highs,” he said. “People are generally undervaluing it, including central banks… Even though gold is an effective diversifier. If you’re neutral, you’d have more than 10% of your portfolio. I hold it as an overlay.” His remarks came as gold prices surged to record highs on Tuesday amid growing expectations of a September interest rate cut. Lower interest rates typically favor non-interest-bearing precious metals. Gold futures rose 1.5% to $2,465.30, beating the previous all-time high of $2,454.20 hit on May 20. Gold futures had risen to $2,467.30 an ounce in trading on the day. Dalio has been bullish on gold for the past few years amid a downturn in the metal’s value and rising geopolitical tensions.
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