Ray Dalio Urges Investors to Choose Gold and Bitcoin Over Debt Assets Amid Rising Global Indebtedness

Billionaire investor Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates, has made a strong case for investing in hard money such as gold and bitcoin while steering clear of debt assets. In a recent speech at a financial conference in Abu Dhabi, Dalio highlighted the unprecedented levels of indebtedness in the US, China, and other major economies, warning that this situation is unsustainable.

“I believe that there would likely be a pending debt money problem,” he stated, advocating for a shift towards tangible assets like gold and bitcoin.

Both gold and bitcoin have been trading near record highs as investors seek hedges against economic uncertainties, geopolitical tensions, and evolving monetary policies. Recently, bitcoin surged past $100,000 for the first time, fueled by positive sentiments from US President-elect Donald Trump regarding digital assets. Dalio explained that hard money refers to currencies backed by physical commodities like gold and silver, or bitcoin, known for its stable and controlled supply.

Dalio emphasized the alarming rise in indebtedness across major economies, stating that it is impossible for these countries to avoid a future debt crisis, which could lead to a significant decline in monetary value. He identified debt, money, and the economy as one of five major forces shaping the future, alongside political and geopolitical dynamics driven by wealth gaps and power conflicts, particularly the US-China tensions.