Nvidia(US:NVDA) Yahoo Finance·2025-10-16 08:23Core Insights - Gold has seen a significant increase in value, with a return of 58% in 2025, outperforming major stock market indices and reaching a record high of $4,200 per ounce [4][5][6] - The U.S. national debt is currently $37.6 trillion, with a budget deficit of $2 trillion for fiscal 2025, prompting investors to hedge against inflation by investing in gold [6][8] - Ray Dalio recommends that investors allocate 15% of their portfolios to gold, a notable increase from the traditional recommendation of 5% [8][4] Group 1: Gold as an Investment - Gold has been a recognized store of value for thousands of years and is currently experiencing a surge in demand due to economic uncertainty [5][6] - The scarcity of gold, with only 216,000 tons mined throughout history, contributes to its value and appeal as an investment [3] - Gold's performance has historically averaged around 8% annually over the last 30 years, but it has recently outperformed the S&P 500 [9][10] Group 2: Economic Context - The abandonment of the gold standard has led to a significant increase in money supply, resulting in a decline in the U.S. dollar's purchasing power by over 90% [1][2] - The current fiscal situation in the U.S. is likened to the early 1970s, where inflation and government spending eroded confidence in paper currency [7][6] - Investors are increasingly concerned about the potential for further devaluation of the U.S. dollar, leading to aggressive hedging with gold [6][4] Group 3: Investment Vehicles - Physical gold requires secure storage and insurance, making it less convenient for investors compared to exchange-traded funds (ETFs) like the SPDR Gold Trust [12][13] - The SPDR Gold Trust is fully backed by gold reserves and allows investors to capture gold's upside without the need for physical storage [13] - The ETF has an expense ratio of 0.4%, which is generally more cost-effective than storing physical gold [13][14]