In this picture illustration, a one-ounce gold bar, a gold nugget, and gold cash are displayed at Witter Coins on Oct. 7, 2025 in San Francisco, California.
Justin Sullivan | Getty Images
J.P Morgan famously stated in his 1912 congressional testimony that “Gold is money, everything is credit.”
It appears unsurprising then that many investors appear to be fleeing from credit score and are parking their wealth in gold as an alternative, which despatched the costs of the yellow metallic crossing $4,000 for the primary time.
Bridgewater Associates founder Ray Dalio stated investors ought to allocate as a lot as 15% of their portfolios to gold in a market that he stated is corresponding to the early Nineteen Seventies — when components like excessive debt, and financial uncertainty eroded confidence in paper property 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 stated 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 not, and are scrambling over each other for the glittery stuff.
What it’s essential know right now
Gold crosses $4,000 mark for the primary time. That comes as investors seek a safe haven from a weaker greenback, geopolitical volatility, financial uncertainty and cussed inflation.
Nvidia-OpenAI partnership is completely different. The new deal is Nvidia’s first “direct partnership” with the ChatGPT maker, CEO Jensen Huang said. The chip large introduced in September it plans to speculate as much as $100 billion in OpenAI to construct out synthetic intelligence information heart capability.
Thin margins at Oracle. Oracle shares fell Tuesday following a report from The Information questioning its plans to spend billions on Nvidia chips for cloud leases to purchasers like OpenAI. In the quarter ended August, Oracle’s Nvidia cloud enterprise posted gross margins of simply 14%, far under its total margin of round 70%.
S&P 500 ends successful streak Tuesday. The broad market index pulled back 0.38%, snapping a 7-day successful streak as investors fear in regards to the profitability of the unreal intelligence rollout. Both the Nasdaq and Dow additionally noticed losses. Over in Europe, the Stoxx 600 additionally declined 0.17%, giving up earlier gains.
[PRO] AI bubble out there? Although an synthetic intelligence-driven bubble has emerged out there, there are loads of “real projects” to which investors can still confidently allocate funds, Ritholtz Wealth Management CEO Josh Brown stated 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 stated investors ought to allocate as a lot as 15% of their portfolios to gold whilst the dear metallic surged to an all-time high above $4,000 an oz..
Dalio’s suggestion contrasts with typical portfolio steerage of monetary advisors which tells purchasers to carry largely shares and a few bonds in a 60-40 break up.
Alternative property like gold and different commodities are often recommended to be a low single-digit share of any portfolio due to the shortage of earnings they generate.
— Yun Li