"The way that I look at any market is to look at the buyers and the sellers," Bridgewater Associates founder and billionaire gold bull Ray Dalio tells CNBC in a Jan. 24 interview from the World Economic Forum in Davos, Switzerland.
"And to understand, you know, sort of who's buying and who's selling and what are the motivations behind that. And so in each one of those cases, and I think if I was to get in to that a little bit much I would actually be dealing with sort of some confidential information. I think the important thing here to understand is that gold just generally is something that large buyers, those with lots of portfolios would like to accumulate over a very long time, very slowly ... and build that diversification. Because we're in a new era in terms of which is the currency. What are we? We're in a new world. What is money? And so there's a need to diversify that. However, gold is a very small market by comparison to that. And it's not a big, effective, you can't diversify it. So I think the behavior of gold makes, you know, complete sense, as does the behavior of equities and so on. I don't want to get too much into any one asset class, or what I think about them. I think the important thing here, if I'm an investor, let's go back to the investor, is the most important thing is that you can have is a good, strategic asset allocation mix. In other words you're not going to win by sort of trying to get what the next tip is and what's going to be good and what's going to be bad. That's -- you're definitely going to lose. So what the most investor needs to do is to have a balanced, structured portfolio, a portfolio that does well in different environments."
"And to understand, you know, sort of who's buying and who's selling and what are the motivations behind that. And so in each one of those cases, and I think if I was to get in to that a little bit much I would actually be dealing with sort of some confidential information. I think the important thing here to understand is that gold just generally is something that large buyers, those with lots of portfolios would like to accumulate over a very long time, very slowly ... and build that diversification. Because we're in a new era in terms of which is the currency. What are we? We're in a new world. What is money? And so there's a need to diversify that. However, gold is a very small market by comparison to that. And it's not a big, effective, you can't diversify it. So I think the behavior of gold makes, you know, complete sense, as does the behavior of equities and so on. I don't want to get too much into any one asset class, or what I think about them. I think the important thing here, if I'm an investor, let's go back to the investor, is the most important thing is that you can have is a good, strategic asset allocation mix. In other words you're not going to win by sort of trying to get what the next tip is and what's going to be good and what's going to be bad. That's -- you're definitely going to lose. So what the most investor needs to do is to have a balanced, structured portfolio, a portfolio that does well in different environments."
More information can be found online at http://www.goldbullionadvisors.com
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