This article adheres to strict editorial standards. Some or all links may be monetized.
The early 1970s was a turbulent time in America — marked by soaring inflation, an oil crisis and a sharp drop in stock prices that left investors scrambling for safe havens.
Must Read
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don’t have to deal with tenants or fix freezers. Here’s how
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
- No time to lower your crippling car insurance rate? Here’s how to do it within minutes — you could end up paying $29/month without a single phone call
According to billionaire investor Ray Dalio, history may be repeating itself as surging price levels and massive government spending prompt investors to once again question the value of fiat currencies — and the paper assets tied to them. (1)
“It’s very much like the early ’70s … where do you put your money in?” Dalio said at the recent Greenwich Economic Forum. “When you are holding money and you put it in a debt instrument and when there’s such a supply of debt and debt instruments, it’s not an effective storehold of wealth.”
Dalio has long warned about the sheer size of America’s national debt, now hovering around $37.86 trillion and climbing. He’s described the situation as a potential “debt death spiral” — where the government must borrow just to pay the interest on existing debt, a dynamic that accelerates over time.
If that number feels too abstract, Dalio has a more personal warning — because the asset he’s talking about is something nearly everyone holds: the U.S. dollar.
In a recent post on X, Dalio shared a Q&A with the Financial Times. When asked what would happen to bonds and the dollar if a politically weakened Federal Reserve lets inflation run hot, his answer was blunt:
“It would lead bonds and the dollar to go down in value and if not rectified, would lead to them being an ineffective storehold of wealth and the breaking down of the monetary order as we know it.” (2)
That comment couldn’t have come at a more sensitive time for the Federal Reserve. President Donald Trump has openly pressured the Fed to slash interest rates, repeatedly attacked chair Jerome Powell and is attempting to fire governor Lisa Cook.
Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
Dalio warned that if investors begin to believe the Fed will artificially hold rates too low, it could trigger “an unhealthy decline in the value of money.”
To be sure, that decline may already be underway. The U.S. Dollar Index, which tracks the dollar against a basket of major foreign currencies, tumbled 10.8% in the first half of 2025 — its worst performance since 1973, when Richard Nixon was president. (3)
Meanwhile, inflation continues to chip away at Americans’ purchasing power. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 buys what just $12.05 could in 1970 — a sobering reminder that the dollar hasn’t been a very effective “storehold of wealth” for decades. (4)
The good news? Dalio also revealed one asset he believes can help safeguard your wealth from what’s coming.
Dalio’s ‘very excellent’ hedge
Dalio’s answer is simple: gold.
“Gold is a very excellent diversifier in the portfolio,” he said. (5)
“If you look at it just from a strategic asset allocation perspective, you would probably have something like 15% of your portfolio in gold … because it is the one asset that does very well when the typical parts of the portfolio go down.”
Gold’s appeal is straightforward. Unlike fiat currencies, it can’t be printed at will by central banks. It’s also long been viewed as the ultimate safe haven — not tied to any one country, currency or economy. When markets wobble or geopolitical tensions flare, investors tend to flock to gold, driving prices higher.
Dalio isn’t alone in that view. Jeffrey Gundlach, founder of DoubleLine Capital and widely known as the “Bond King,” recently said that a 25% portfolio allocation to gold “is not excessive,” calling the metal “an insurance policy” that’s likely to remain “in a winning mode” amid ongoing dollar weakness.
Over the past 12 months, gold prices have climbed more than 45%.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Goldco.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
With a minimum purchase of $10,000, Goldco offers a 1-day IRA set-up, price match guarantee, highest buy back guarantee, award-winning customer service and access to a library of retirement resources.
Plus, the company will match up to 10% of qualified purchases in free silver.
A time-tested income play
Gold isn’t the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.
When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.
Over the past five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by 49%, reflecting strong demand and limited housing supply. (6)
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Another option is Homeshares, which gives accredited investors access to the $35 trillion U.S. home equity market — a space that’s historically been the exclusive playground of institutional investors.
Homeshares allows accredited investors to gain direct exposure to a portfolio of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the hassles of buying, owning or managing property.
The fund focuses on homes with substantial equity, using Home Equity Agreements (HEAs) to let homeowners access liquidity without taking on debt or interest payments. This creates an attractive, low-maintenance investment vehicle for retirement savers, with a minimum investment of $25,000.
With risk-adjusted target returns of 14% to 17%, the U.S. Home Equity Fund offers investors access to America’s largest store of household wealth.
And for a limited time, Homeshares will provide Moneywise readers an exclusive 5% bonus for IRA investments.
A finer alternative
It’s easy to see why great works of art tend to appreciate over time. Supply is limited and many famous pieces have already been snatched up by museums and collectors. That scarcity also makes art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.
In 2022 — shortly after U.S. inflation hit a 40-year high — a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie’s New York, making it the most valuable collection in auction history. (7)
Investing in art was traditionally a privilege reserved for the ultra-wealthy.
Now, that’s changed with Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy. It’s easy to use and with 23 successful exits to date, every one of them has been profitable thus far.
Simply browse their impressive portfolio of paintings and choose how many shares you’d like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.
Masterworks has distributed roughly $61 million back to investors. New offerings have sold out in minutes, but you can skip their waitlist here.
What To Read Next
- Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’
- I’m almost 50 and have nothing saved for retirement — what now? Don’t panic. These 6 easy steps can help you turn things around
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
- 22 US states are now in a recession or close to it — protect your savings with these 10 essential money moves ASAP
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CNBC (1); @RayDalio (2); Bloomberg Originals (3); Federal Reserve Bank of Minneapolis (4); Bloomberg Television (5); S&P Global (6); Christie’s (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.