Ray Dalio’s Faith in Gold Is Unshaken

Not even gold’s second quarterly straight decline was enough to shake billionaire hedge-fund manager Ray Dalio’s confidence in gold.

Dalio’s Bridgewater Associates maintained its holdings in SPDR Gold Shares, the largest bullion-backed ETF, at 3.9 million shares, and its stake in iShares Gold Trust, the second-largest, at 11.3 million shares in the third quarter, according to a regulatory filing Tuesday.

Bridgewater stayed loyal to bullion even amid an investor sell-off that sent assets in bullion-backed ETFs tracked by Bloomberg tumbling by 2.79 million ounces in the third quarter, the first such decline since the end of 2016. The precious metal’s haven appeal has waned as the dollar rallied and borrowing costs rose in the U.S., making non-interest bearing assets less competitive.

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The hedge fund also added to its holdings in Barrick Gold Corp., Franco-Nevada Corp., Newmont Mining Corp. and Kinross Gold Corp. in the third quarter. In the same quarter, Bridgewater pared its stake in bullion producers including Yamana Gold Inc. and Eldorado Gold Corp.

Source: Bloomberg Finance L.P.

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