{"id":297580,"date":"2025-07-28T04:13:16","date_gmt":"2025-07-28T04:13:16","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/297580\/"},"modified":"2025-07-28T04:13:16","modified_gmt":"2025-07-28T04:13:16","slug":"uk-is-in-a-debt-doom-loop-put-your-cash-in-gold-says-ray-dalio","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/297580\/","title":{"rendered":"UK is in a debt doom loop, put your cash in gold, says Ray Dalio"},"content":{"rendered":"

The UK is in a \u201cdebt doom loop\u201d, according to the founder of one of the world\u2019s biggest hedge funds, who recommended people put at least 15 per cent of their savings into gold or bitcoin to help shield them from potential market turmoil.<\/p>\n

Ray Dalio, the billionaire founder of Bridgewater Associates in the United States, said the bond markets were too complacent about the excessive borrowing by many western governments and the risks were not fully priced in.<\/p>\n

Speaking on the The Master Investor Podcast with Wilfred Frost, he reserved some of his fiercest criticism for Britain. \u201cThe UK is in a debt doom loop,\u201d he said, and warning signals were \u201cbeginning to flash and flicker\u201d.<\/p>\n

\"Wilfred<\/p>\n

Wilfred Frost hosts The Master Investor Podcast, where Dalio singled out the UK for criticism<\/p>\n

DAVID A. GROGAN\/CNBC\/GETTY IMAGES<\/p>\n

He suggested investors should hold at least 15 per cent of their assets in the form of gold or bitcoin, which could act as a hedge in the event of a collapse of big currencies including the pound. His personal preference was for gold.<\/p>\n

Holding 15 per cent of assets in gold or digital tokens is far higher than conventional advisers would recommend because they yield nothing and, in the case of bitcoin, have never been tested in a significant financial crisis.<\/p>\n

He said governments including in the UK needed to both raise taxes and cut spending \u201cequally\u201d to bring down borrowing. <\/p>\n

The price of bitcoin is notoriously volatile, but has vaulted past $120,000 for the first time<\/a> in recent weeks. Gold also hit a record high this year: although it retreated last week, it remains 28 per cent higher than where it began in 2025 at $3,335 an ounce.<\/p>\n

Dalio, 75, who retired from Bridgewater in 2021, did not tell Frost how much bitcoin or gold he owned, but suggested that others should have \u201cabout 15 per cent of your money\u201d in gold and bitcoin. \u201cI\u2019m strongly preferring gold to bitcoin, but that\u2019s up to you,\u201d he said. <\/p>\n

\u201cThe issue is the devaluation of money, [which has happened] in times of excess debt and geopolitical problems. Just go back and study history, study the British pound, study the Dutch guilder \u2014 you would find that in all such periods [of currency devaluation, gold] is an effective diversifier.\u201d<\/p>\n

The UK government\u2019s debts stand at \u00a32.87 trillion and the Treasury is forecast to have to find \u00a3110 billion this year just to pay the interest on past borrowing. Rachel Reeves is expected to have to raise taxes or find new spending cuts to meet her fiscal rules this autumn.<\/p>\n

\u2022 The UK can\u2019t keep muddling through a massive increase in debt<\/b><\/a><\/p>\n

Dalio also discussed artificial intelligence in the interview. He believed that AI was \u201cso revolutionary and so disruptive\u201d that it could be hard to value companies in the sector appropriately.<\/p>\n

His feeling, though, was that the big AI stocks such as the \u201cMagnificent Seven\u201d, which includes Apple, Nvidia and Microsoft, have become \u201crather expensive relative to what even optimists would say are the present value of the future cashflows\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"The UK is in a \u201cdebt doom loop\u201d, according to the founder of one of the world\u2019s biggest…\n","protected":false},"author":2,"featured_media":297581,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,16,15],"class_list":{"0":"post-297580","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114928918085207729","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/297580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=297580"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/297580\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/297581"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=297580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=297580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=297580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}