Gold skeptics are from Mars, investors are from Earth

JP Morgan testified before Congress in 1912: “Gold is money, and everything is credit.”

It seems unsurprising, then, that many investors fled credit and stored their wealth in gold instead, sending prices for the yellow metal above $4,000 for the first time.

Ray Dalio, founder of Bridgewater Associates, said investors should allocate up to 15% of their portfolios to gold in a market he said was similar to the early 1970s — when factors such as high debt and monetary uncertainty eroded confidence in paper assets and fiat currencies..

Some might be tempted to quote Warren Buffett as a counterpoint, who is famously skeptical of the utility of gold.

In 1998, Buffett said: “(Gold) is dug up out of the ground in Africa, or somewhere. Then we melt it, dig another hole, then bury it again and pay people to stand around guarding it. It’s no use. Anyone watching from Mars would scratch their head.”

The Martians may be confused, but the Earthlings are not, and are scrambling over each other to get the shiny objects.

Gold exceeds the $4,000 barrier for the first time. This comes as investors Find a safe haven From dollar weakness, geopolitical volatility, economic uncertainty, and stubborn inflation.

The partnership between Nvidia and OpenAI is different. the New deal It’s the first “direct partnership” between Nvidia and the maker of ChatGPT, CEO Jensen Huang He said. The chip giant announced this in September Plans To invest up to $100 billion in OpenAI to build AI data center capacity.

Thin margins at Oracle. Oracle shares It fell on Tuesday after a report from Information Questioning its plans to spend billions on Nvidia cloud leasing chips to clients like OpenAI. In the quarter ended August, Oracle’s Nvidia cloud business posted gross margins of just 14%, well below its gross margin of about 70%.

The S&P 500 ended its winning streak on Tuesday. Broad market index Declined 0.38% Snapping a 7-day winning streak as investors worry about the profitability of the AI ​​rollout. The Nasdaq and Dow Jones also saw losses. In Europe, the Stoxx 600 Index also fell by 0.17%. Let go of past gains.

(PRO) Artificial Intelligence Bubble in the Market? Although there is an AI-led bubble in the market, there are plenty of “real projects” that investors can do. Still allocate funds with confidenceJosh Brown, CEO of Ritholtz Wealth Management, said on CNBC “Halftime report.”

Ray Dalio says today is like the early 1970s and investors should hold more gold than usual

Even with the precious metal, investors should allocate up to 15% of their portfolios to gold, said Ray Dalio, founder of Bridgewater Associates. It rose to all-time highs More than $4,000 an ounce.

Dalio’s recommendation contrasts with financial advisors’ typical portfolio guidelines that ask clients to hold mostly stocks and some bonds with a 60-40 split.

Alternative assets such as gold Other commodities are typically suggested to make up a low single-digit percentage of any portfolio due to the lack of income they generate.

– Yun Lee