In this photograph illustration, gold cash are displayed at Witter Coins on Oct. 7, 2025 in San Francisco, California.
Justin Sullivan | Getty Images
J.P Morgan famously mentioned in his 1912 congressional testimony that “Gold is money, everything is credit.”
It appears unsurprising then that many buyers appear to be fleeing from credit score and are parking their wealth in gold as a substitute, which despatched the costs of the yellow steel crossing $4,000 for the primary time.
Bridgewater Associates founder Ray Dalio mentioned buyers ought to allocate as a lot as 15% of their portfolios to gold in a market that he mentioned is corresponding to the early Nineteen Seventies — when components like excessive debt, and financial uncertainty eroded confidence in paper belongings and fiat currencies.
Some could also be tempted to cite Warren Buffett as a counterpoint, who was famously skeptical on the utility of gold.
In 1998, Buffett mentioned that “[Gold] gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”
Martians could also be scratching their head, however earthlings are usually not, and are scrambling over each other for the glittery stuff.
What it’s good to know in the present day
Gold crosses $4,000 mark for the primary time. That comes as buyers seek a safe haven from a weaker greenback, geopolitical volatility, financial uncertainty and cussed inflation.
Softbank to purchase ABB robotics unit. SoftBank Group on Monday mentioned it had agreed to buy the robotics division of Swiss engineering agency ABB for $5.4 billion, because the Japanese large seems to bolster its synthetic intelligence performs.
M&A engine is roaring. M&As this yr have been buoyed by rate-cut expectations and elevated ranges of private-equity “dry powder.” Collective offers within the third quarter have been valued at $1.29 trillion, in comparison with $1.06 trillion within the second quarter and $1.1 trillion within the first quarter.
S&P 500 ends successful streak. The broad market index pulled back 0.38% Tuesday stateside, snapping a 7-day successful streak as buyers fear concerning the profitability of the synthetic intelligence rollout. Both the Nasdaq and Dow additionally noticed losses. On Wednesday, Asia markets mostly fell, with Japan’s Nikkei retreating from its report excessive.
[PRO] AI bubble out there? Although an synthetic intelligence-driven bubble has emerged out there, there are many “real projects” to which buyers can still confidently allocate funds, Ritholtz Wealth Management CEO Josh Brown mentioned on CNBC’s “Halftime Report.”
And lastly…
NEW YORK, NEW YORK – MAY 22: Ray Dalio, Founder and CIO Mentor, Bridgewater Associates speaks onstage throughout The Wall Street Journal’s 2024 The Future Of Everything Festival at Spring Studios on May 22, 2024 in New York City.
Dia Dipasupil | Getty Images Entertainment | Getty Images
Ray Dalio says today is like the early 1970s and investors should hold more gold than usual
Bridgewater Associates founder Ray Dalio mentioned buyers ought to allocate as a lot as 15% of their portfolios to gold whilst the valuable steel surged to an all-time high above $4,000 an oz..
Dalio’s advice contrasts with typical portfolio steering of monetary advisors which tells shoppers to carry largely shares and a few bonds in a 60-40 break up.
Alternative belongings like gold and different commodities are normally advised to be a low single-digit share of any portfolio due to the dearth of earnings they generate.
— Yun Li