On Friday, gold (NYSEARCA:GLD) futures for December delivery jumped $7.80 to settle at $1,778 per ounce, while silver (NYSEARCA:SLV) edged 4 cents lower to close at $34.64. Gold hit new all-time highs in terms of the Euro, Swiss Franc and Brazilian Real.
Gold received heavy attention today after Ray Dalio, founder and co-chief investment of the world’s largest hedge fund, Bridgewater Associates, expressed his views to CNBC on the global economy and alternative currencies. On the current slowdown and deleveraging process, he said, “I think there will be a combination of monetary policy and printing a certain amount of money to relieve it. And at the same time, there’ll be a deleveraging and restructuring of debt…I think we’re going to see both because you have to lower the debt-to-income ratio so you have a higher level of growth than you do of interest rates. And at the same time, there’ll be a deleveraging and restructuring of debt…I think we’re going to see both because you have to lower the debt-to-income ratio so you have a higher level of growth than you do of interest rates.”
Dalio also said he thought Warren Buffett was “making a big mistake” by publicly bashing gold. He explains, “We have a situation now where when you have too much debt. Too much debt leads to printing of money to make it easier to service. So all of those things mean that some portion of an investment portfolio should be in gold.”
By the end of the trading day, the SPDR Gold Trust (NYSEARCA:GLD) closed 0.29 percent higher, while the iShares Silver Trust (NYSEARCA:SLV) edged slightly lower. Gold miners (NYSEARCA:GDX) such as Yamana Gold (NYSE:AUY) and Goldcorp (NYSE:GG) both jumped about 1 percent. Meanwhile, Silver Wheaton (NYSE:SLW) and Endeavour Silver (NYSE:EXK) gained 0.66 percent and 0.86 percent, respectively.
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Disclosure: Long EXK, AG, HL, PHYS