Billionaire who predicted 2008 crash issues stark warning over 'worrying' new US trend… but there's one way to protect your savings AND make money
Billionaire hedge fund manager Ray Dalio, who famously predicted the 2008 crash, has warned that America's massive debt is becoming a serious problem.
But he said there is a relatively simple way for ordinary people to both protect their savings and make money.
Dalio, the founder of Bridgewater Associates, was speaking at the World Economic Forum in Davos when he said the US is heading into dangerous territory as it keeps borrowing more and more money.
In simple terms, Dalio said the US - which already owes more than $38trillion - needs to borrow vast amounts more, while investors who buy US government debt are becoming uneasy about how much they already hold.
He said both Americans and the holders of US debt 'are worried about each other,' and that this growing debt pile is exactly why he believes gold is becoming more attractive.
When governments borrow too much, they are forced to weaken their currencies or keep interest rates artificially low to make the debt easier to manage, an aggressive tactic favored by President Donald Trump
Gold, however, tends to hold its value in these situations because it is not controlled by any government. More gold cannot be made in the same way more bank notes are printed.
That is why Dalio described gold as insurance for your savings - something that can help protect wealth if things go wrong. But, he added, gold is not just about protection - it can also make money.
Pictured: Billionaire investor Ray Dalio at Davos
As fears about debt, inflation and politics grow, more investors pile into gold. That rising demand pushes prices higher, which means people who already own gold can see real gains.
In the one year since Trump took office, the price of gold has surged more than 80 percent, repeatedly breaking all-time record highs. Today, it sits at $4,780 per ounce after only just reaching $4,000 in the fall.
Dalio said it makes sense for ordinary investors to keep a slice of their money in gold, alongside other investments, and called it 'a prudent thing' to keep 'between 10 or 15 percent of your portfolio' in the precious metal.
While many Americans may wonder if they've missed the boat with gold soaring at record highs, experts say average investors should still get on board.
'All in all, gold can still work at high prices,' eToro's Lale Akoner told the Daily Mail. She said not buying more than you can afford and deciding whether an exchange-traded fund (ETF) or actual gold are right for you 'matter more than trying to call the top.'
For everyday investors, getting exposure to gold no longer requires vaults or armored trucks.
One option is to buy ETFs that track the price of gold, such as SPDR Gold Shares or iShares Gold Trust, which can be purchased in seconds through platforms like Robinhood or held inside many 401k plans.
Americans can also buy physical gold from banks, dealers and even mainstream stores like Costco, which often sells out quickly after getting new stock in each month.
Early purchasers of Costco's one-ounce gold bar, which first went on sale in 2023, paid just $1,949 and have more than doubled their money since - as long as they held on through a brief moment of panic last year.
Another option would be to buy stocks in gold mining companies, an additional layer removed from buying the metal directly or indirectly.
'You can buy a basket of gold mining companies or ETFs that have gold,' Derek Reisfeld, founder of Marketwatch, told the Daily Mail. 'You can do it online in seconds.'
Though, some experts say they are not always as reliable.
'During times of acute stress, gold outperforms gold mining stocks,' Sameer Samana, head of global equities and real assets at Wells Fargo, told the Daliy Mail. He did note, however, that gold ETFs can get you '80 to 90 percent there.'
Pictured: President Donald J Trump waves as he arrives at the White House in Washington, DC, on Tuesday, January 20, 2026
For those who want to diversify longer-term, Chip Lupo, an analyst at Wallethub, explained that savers could look into gold IRAs for their future retirement, though the tax advantages also come with more fees and strict rules.
'Even with major institutions projecting gold prices in the $4,800-$5,000 range in 2026, gold works best when held over multiple years and funded with surplus savings,' Lupo told the Daily Mail.
As a hedge against turmoil, gold has been especially hot under Trump, who has been doubling down on his push to acquire Greenland and threatening tariffs on allies who oppose him.
Dalio has been sounding the alarm about the national debt over the past year while criticizing the president's tariff policies.
In an interview with Bloomberg's David Rubenstein earlier this month, the billionaire investor was asked if Rubenstein's 'grandchildren and great grandchildren not yet born' would be paying off debt in devalued dollars.
'I think they'll probably be beyond that,' Dalio said, predicting that the US would devalue its currency and artificially lower interest rates to prop up the economy.
In July 2025, Dalio, who also foresaw the 2008 financial collapse, warned that, 'if the US doesn't cut the deficit to 3 percent of the GDP, and soon, we risk facing an economic heart attack in the next three years.'
The national debt, the total amount of outstanding borrowing by the US Federal Government, currently stands at greater than $38trillion, which prompted Rubenstein to ask Dalio why the bond market had not yet collapsed under its weight.
'There's a saying, you know, that everything goes slowly until it happens all at once,' Dalio replied - a paraphrase of Ernest Hemingway's famous line about going bankrupt.
