Market Realist/Annie Gilroy/5-22-2019
“Bridgewater Associates didn’t have any major positions in gold ETFs until the second quarter of 2017. By the end of the third quarter of 2017, GLD formed 3.18% of the fund’s portfolio. Dalio likes gold due to its diversification and hedging properties. In a LinkedIn post last August, Dalio wrote, ‘If you don’t have 5–10% of your assets in gold as a hedge, we’d suggest that you relook at this. Don’t let traditional biases, rather than an excellent analysis, stand in the way of you doing this.'”
USAGOLD note: Bridgewater Associates is the largest hedge fund in the world, so 5% to 10% of its assets amounts to a considerable total. We would add that Dalio is not the only billionaire investor recommending gold ownership these days. Billionaires own ETFs to circumvent the insurance, security and storage problems. The typical private investor, on the other hand, can store his or her needs in an average-sized safety deposit box and avoid the costs and limitations imposed by ETFs. If you would like to learn more on that score, please give the TradingDesk a call.
