Ray Dalio's $319 Million Gold Bet and Warnings on U.S. Debt Risk.
In the first quarter of 2025, billionaire investor Ray Dalio, co-chief investment officer of Bridgewater Associates, made headlines with a substantial $319 million purchase of SPDR Gold Shares (GLD), the world’s largest gold-backed ETF. This move marks a rapid re-entry into gold after Bridgewater sold its previous holdings by the end of 2023, reflecting Dalio’s ongoing belief in gold as a vital hedge amid global economic uncertainty.
Dalio has long been a vocal advocate for diversification and caution against fiat currency risks. Speaking to CNBC earlier this year, he emphasized that investors should allocate about 10% of their portfolio to gold, especially in times of geopolitical tension and inflation fears. This Q1 investment was made as gold rallied to unprecedented heights, touching $3,500 an ounce before recent market volatility caused a pullback to around $3,187 per ounce.
Adding to market jitters, Dalio issued a stark warning following Moody’s downgrade of the U.S. credit rating from Aaa to Aa1—the first such reduction by the agency. Dalio argued that the downgrade underestimated the true risk to U.S. Treasury holders by ignoring the potential for the government to print money to meet its debt obligations. He explained that this could erode the value of returns, causing losses for bondholders not just from default risk, but from inflationary devaluation of the dollar.
Dalio’s timely insights resonate in a period marked by rising Treasury yields— the 30-year bond recently jumped to nearly 5%—and a turbulent stock market reacting to fiscal concerns. Despite Bridgewater’s assets under management declining to approximately $92 billion in 2024, down from $150 billion in 2021, Dalio’s moves underscore his commitment to navigating turbulent markets through strategic asset allocation.
Recent Development: Dalio’s Bridgewater Expands ESG Investments
In a fresh move reported within the last 48 hours, Bridgewater Associates announced plans to increase its focus on Environmental, Social, and Governance (ESG) investing, aiming to integrate sustainable finance into its core strategies. This pivot signals Dalio’s recognition of evolving market demands and the long-term value of sustainability-focused portfolios, complementing his traditional emphasis on diversification and risk management.
Dalio commented on this shift: “Markets are transforming, and incorporating ESG principles isn’t just ethical; it’s prudent investment strategy. At Bridgewater, we’re positioning ourselves to lead in this space while maintaining our disciplined approach to portfolio balance.”
This recent announcement illustrates how Dalio blends forward-thinking market perspectives with his historic prudence in safeguarding wealth—keeping Bridgewater relevant amid changing investor priorities.
