Billionaire Ray Dalio Warns Global Monetary Order Breaking Down As Central Banks Diversify Into Gold

Billionaire investing icon Ray Dalio says the global monetary order is suddenly experiencing a major shift.

In a new CNBC interview, Dalio says central banks are moving away from holding fiat currencies as a reliable store of value.

“The monetary order is breaking down. What I mean by the monetary order is that fiat currencies and debt as a storehold of wealth is not being held by central banks in the same way and that there was a change. The biggest market to move last year was the gold market, far better than the tech markets. And the US markets underperformed foreign markets.”

Dalio notes central banks are diversifying their assets by increasing their gold holdings as the US dollar is losing its luster.

“We know that both the holders of US dollar denominated debt, which is money, and those who need it, the United States, are worried about each other. If you have other countries who are holding it and they’re worried about each other, and we’re producing a lot of it, that’s a big issue…

Maybe there’s not the same inclination to buy US debt…

Central banks and sovereign wealth funds and others are buying gold, are buying these assets as a diversifier. Gold is not a metal to speculate on. It’s the second largest reserve currency.”

Gold is trading at $4,864 per ounce at time of writing, up more than 84% in the past year.

Generated Image: Midjourney