On this picture illustration, a one-ounce gold bar, a gold nugget, and gold cash are displayed at Witter Cash on Oct. 7, 2025 in San Francisco, California.
Justin Sullivan | Getty Photos
J.P Morgan famously stated in his 1912 congressional testimony that “Gold is cash, every thing is credit score.”
It appears unsurprising then that many buyers appear to be fleeing from credit score and are parking their wealth in gold as an alternative, which despatched the costs of the yellow steel crossing $4,000 for the primary time.
Bridgewater Associates founder Ray Dalio stated buyers ought to allocate as a lot as 15% of their portfolios to gold in a market that he stated is corresponding to the early Nineteen Seventies — when elements like excessive debt, and financial uncertainty eroded confidence in paper property and fiat currencies.
Some could also be tempted to cite Warren Buffett as a counterpoint, who was famously skeptical on the utility of gold.
In 1998, Buffett stated that “[Gold] will get dug out of the bottom in Africa, or someplace. Then we soften it down, dig one other gap, bury it once more and pay folks to face round guarding it. It has no utility. Anybody watching from Mars could be scratching their head.”
Martians could also be scratching their head, however earthlings should not, and are scrambling over each other for the glittery stuff.
What you must know at this time
Gold crosses $4,000 mark for the primary time. That comes as buyers search a protected haven from a weaker greenback, geopolitical volatility, financial uncertainty and cussed inflation.
Nvidia-OpenAI partnership is completely different. The brand new deal is Nvidia’s first “direct partnership” with the ChatGPT maker, CEO Jensen Huang stated. The chip big introduced in September it plans to take a position as much as $100 billion in OpenAI to construct out synthetic intelligence knowledge heart capability.
Skinny margins at Oracle. Oracle shares fell Tuesday following a report from The Info questioning its plans to spend billions on Nvidia chips for cloud leases to shoppers like OpenAI. Within the quarter ended August, Oracle’s Nvidia cloud enterprise posted gross margins of simply 14%, far beneath its general margin of round 70%.
S&P 500 ends successful streak Tuesday. The broad market index pulled again 0.38%, snapping a 7-day successful streak as buyers fear concerning the profitability of the unreal intelligence rollout. Each the Nasdaq and Dow additionally noticed losses. Over in Europe, the Stoxx 600 additionally declined 0.17%, giving up earlier positive aspects.
[PRO] AI bubble out there? Though an synthetic intelligence-driven bubble has emerged out there, there are many “actual tasks” to which buyers can nonetheless confidently allocate funds, Ritholtz Wealth Administration CEO Josh Brown stated on CNBC’s “Halftime Report.”
And eventually…
NEW YORK, NEW YORK – MAY 22: Ray Dalio, Founder and CIO Mentor, Bridgewater Associates speaks onstage throughout The Wall Road Journal’s 2024 The Future Of Every part Pageant at Spring Studios on Might 22, 2024 in New York Metropolis.
Dia Dipasupil | Getty Photos Leisure | Getty Photos
Bridgewater Associates founder Ray Dalio stated buyers ought to allocate as a lot as 15% of their portfolios to gold whilst the dear steel surged to an all-time excessive above $4,000 an oz..
Dalio’s advice contrasts with typical portfolio steerage of economic advisors which tells shoppers to carry principally shares and a few bonds in a 60-40 break up.
Various property like gold and different commodities are often steered to be a low single-digit proportion of any portfolio due to the dearth of earnings they generate.
— Yun Li
