(Kitco News) - The gold market might be struggling, as it has been unable to hold initial support levels, but some key investors have taken a renewed interest in the metal.
Billionaire investor Ray Dalio, co-chief investment officer of Bridgewater Associates, has long been a gold bull. According to the firm’s updated investment disclosure, he is now putting his money where his mouth is.
Updated 13F filings with the Securities and Exchange Commission (SEC) show that Bridgewater bought 1.1 million shares of SPDR Gold Shares (NYSE: GLD) — the world’s largest gold-backed exchange-traded fund (ETF) — in the first three months of this year. The holdings are worth nearly $319 million.
Dalio’s first-quarter gold investment closely matches his previous bet on the metal; however, this new position was established at a much faster pace. Historical data shows that between 2000 and 2022, Bridgewater built a position in GLD that, at its peak, was valued at $400 million. However, all the shares were sold by the fourth quarter of 2023.
Dalio has often emphasized the importance of diversification and has advocated holding assets like gold to mitigate risks associated with fiat currencies and geopolitical tensions.
“I believe a lot in diversification. I also think that people don’t typically have an adequate amount of gold in their portfolio,” Dalio said in an interview with CNBC in mid-February. “When bad times come, gold is a very effective diversifier.”
Dalio added that in the current environment, investors should consider holding about 10% of their portfolio in gold.
During the first quarter, GLD saw its gold holdings increase by 61 tonnes as investors looked to hedge against geopolitical chaos and economic uncertainty.
The second quarter has been more volatile. Gold prices rallied to an all-time high of $3,500 an ounce last month but have since faced significant selling pressure. Spot gold last traded at $3,187.50 an ounce, down 1.73% on the day and down roughly 9% from its all-time high.
