Ray Dalio Predicts Gold and Non-Fiat Currencies Will Rise Amid Global Debt Crisis

Ray Dalio, founder of Bridgewater, predicts that gold and non-fiat currencies will gain strength as major currencies weaken under growing global debt pressures. Dalio warns that excessive spending and borrowing by governments will lead to a decline in the value of major currencies, making gold and non-fiat currencies more attractive.

Ray Dalio, the founder of Bridgewater Associates, has warned that gold and non-fiat currencies will become stronger stores of value as major currencies face devaluation risks due to mounting global debt pressures. Speaking at the FutureChina Global Forum 2025, Dalio cautioned that excessive spending and spiraling debt by governments worldwide, particularly the United States, pose significant fiscal risks. He emphasized that all currencies risk losing their appeal as repositories of wealth when governments are reluctant to rein in excessive spending and borrowing, making gold and non-fiat currencies more viable alternatives Ray Dalio says gold, non-fiat currencies will be stronger stores of value as U.S. debt mounts^[1].

Dalio advised investors to diversify their portfolios, suggesting that around 10% be allocated to gold. He noted that the U.S. government's debt has grown to six times the amount of money it has taken in, and estimated that an additional $12 trillion in debt would be needed to cover the deficit, interest payments, and roll-over of maturing borrowings. However, the global market lacks sufficient demand for this additional debt, creating a supply-demand imbalance Ray Dalio says gold, non-fiat currencies will be stronger stores of value as U.S. debt mounts^[1].

The U.S. dollar, while retaining its dominant role as a medium of exchange, is facing challenges. The dollar index has depreciated by 10% year-to-date, and other major currencies have also weakened against gold, making the precious metal the second-largest reserve currency globally. Dalio noted that the rising role of the Chinese yuan in global trade may take some shine off the dollar but is unlikely to challenge its primacy Ray Dalio says gold, non-fiat currencies will be stronger stores of value as U.S. debt mounts^[1].

Beyond gold, other non-fiat assets such as cryptocurrencies and silver are gaining attention as potential stores of value. Cryptocurrencies like Bitcoin (BTC) have been rising alongside gold and the S&P 500, fulfilling the conditions for a non-fiat currency. Silver has also expanded to its highest level since 2011, with some analysts predicting it could break out above $50 for the first time in history Ray Dalio: Gold, non-fiat currencies will become stronger as a store of value^[2].

Dalio's warnings coincide with broader concerns about mortgage payments and the potential for a fiscal crisis in the United States and other major economies. The dollar's depreciation and the weakening of other major currencies against gold highlight the need for investors to consider alternative assets in their portfolios.