Ray Dalio, the billionaire founder of hedge fund Bridgewater, warned that gold and non-fiat currencies are likely to become more popular safe stores of value while major currencies face pressure from rising global debt. Speaking at the FutureChina Global Forum 2025, he said that the U.S. government’s heavy spending and debt are “unsustainable” and could trigger a fiscal crisis that undermines the global monetary system.
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Indeed, Dalio said that years of overspending have left the U.S. with debt that is about six times greater than its revenue. To keep up, the government will need to borrow another $12 trillion to cover a $2 trillion deficit, $1 trillion in interest costs, and $9 trillion in maturing debt. However, global markets don’t have the appetite to buy that much, which creates a supply-demand imbalance. Meanwhile, President Donald Trump’s tax-and-spending package is set to add another $3.4 trillion in debt over the next decade.
Dalio explained that when governments borrow excessively without cutting back, people lose trust in their currencies, thereby making gold and alternatives more appealing. Dalio also noted that while the dollar has fallen by more than 10% against other major currencies this year, those same currencies have weakened compared to gold. This has made gold the world’s second-largest reserve currency and highlights how demand for it has grown as confidence in paper money fades. As a result, he advised investors to keep about 10% of their portfolios in gold as protection.
Is the SPDR Gold Shares ETF a Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for the SPDR Gold Shares ETF (GLD). Indeed, the summary section pictured below shows that 13 indicators are Bullish, compared to three Neutral and six Bearish indicators.
