Core Insights - Ray Dalio, founder of Bridgewater Associates, recommends that investors allocate approximately 15% of their portfolios to gold, emphasizing its role as a source of downside protection [2][3][6] - Gold futures have recently traded at around $4,000 per troy ounce, marking a significant increase of approximately 50% this year, which has also positively impacted other metals [2][6] Investment Rationale - Gold is viewed as an excellent diversifier within investment portfolios, particularly in light of high stock valuations, inflation concerns, and overall market uncertainty [3][4] - The recent surge in gold prices is attributed to factors such as uncertainty surrounding the U.S. government shutdown, a weaker dollar, and ongoing foreign central bank purchases [5][6] Expert Recommendations - General recommendations for gold allocation range from 5% to 20%, depending on market conditions and individual risk tolerance, with some experts suggesting allocations as high as 25% [6] - Dalio's suggestion of a 15% allocation aligns with broader expert views on gold as a hedge against inflation and market volatility [3][6]