Jim Cramer: Gold is finally catching up with the ridiculous U.S. budget deficit; Ray Dalio says investors should have 15% of their portfolios in gold.

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Gold crossed $4,000 today. This kind of rapid spike has only happened a few times in history — and it’s never ended well.

The pattern goes back centuries:

• Rome’s Crisis (235-284 AD) → Empire collapse
• Spanish Empire decline (1600s) → Lost world power status
• French Revolution (1789) → Monarchy overthrown
• Weimar Germany (1921-1923) → Hyperinflation destroyed savings
• Bretton Woods collapse (1971) → Dollar crisis, gold soared 2,400%
• Soviet Union dissolution (1991) → Ruble collapse

Every time, it meant the same thing: People lost faith in their money and government.

History is repeating itself right now — and almost no one is paying attention.

Ray Dalio says investors should have 15% of their portfolios in gold. Here’s what others think of his advice.
The hedge-fund billionaire says today’s economic times remind him of the 1970s

‘If you look at it just from a strategic asset-allocation perspective, you would probably have something like 15% of your portfolio in gold, because it is one asset that does very well when the typical parts of the portfolio go down.’

That was Ray Dalio — the billionaire founder of the world’s largest hedge fund, Bridgewater Associates — discussing how much gold it makes sense for investors to have in their portfolios.

Speaking Tuesday at the Greenwich Economic Forum in Connecticut, Dalio touted gold
GC00 while comparing the current economic landscape with that of the 1970s.

“It’s very much like the early ‘70s. … Where do you put your money in?” he said. “When you are holding money and you put it in a debt instrument, and when there’s such a supply of debt and debt instruments, it’s not an effective storehold of wealth.”

Generally, gold is seen by some investors as a way to protect against inflation and market volatility, particularly in uncertain economic times. But Dalio’s 15% asset recommendation for gold holdings contrasts with the advice of many financial advisers who tell clients that a 60/40 split between stocks and bonds is optimal, with alternate assets like gold and commodities below a 10% threshold.

https://www.marketwatch.com/story/ray-dalio-says-investors-should-have-15-of-their-portfolios-in-gold-heres-what-others-think-of-his-advice-bb3d2852?mod=home_lead

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