Billionaire Ray Dalio says you should have up to 15% of your money in gold because of uncertainty around the Iran war

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By Joy WiltermuthThe world is changing quickly, including with more transactions taking place away from the dollar system, says DalioHedge-fund billionaire Ray Dalio said Monday that gold should be an important diversifier in portfolios as the Iran war enters its ninth week."I think it's important to understand that gold is a type of money." Ray Dalio, founder of Bridgewater AssociatesHedge-fund billionaire Ray Dalio on Monday said the Iran war dragging into a ninth week raises all kinds of uncertainty in the world, and means investors should be allocating 5% to 15% of their portfolio to gold.The big question being asked around the world right how is whether the United States can win the war, Dalio said in a CNBC interview, noting domestic pressures around higher gas prices, the coming summer travel season and midterm elections, as well as a desire to keep the conflict relatively short.Another crucial question is who ends up controlling the Strait of Hormuz, said Dalio, who in the mid-1970s founded Bridgewater Associates, the world's largest hedge fund, before stepping away from the firm in the past few years. The Persian Gulf waterway has been largely blocked since the conflict started, despite an April 8 cease-fire agreement. Before the war, the strait transported about 20% of the world's seaborne oil."So, you want to come out of this with a win," Dalio said. He also pointed to changes in what's considered money, given the recent increase in international transactions in the Chinese renminbi, as well as the use of sanctions by the U.S. and changes to global trade.Iran has indicated it wants to collect transit fees on the Strait of Hormuz as part of any peace agreement.Related: Here's how much money Iran can make charging tolls on one-fifth of the world's seaborne oil"I think it's important to understand that gold is a type of money," Dalio said. "It's the oldest kind of money. It's the second-largest reserve currency of central banks," he said, pointing to the dollar in the top spot, followed by gold, the euro and then the yen.Gold also acts as a diversifier, Dalio said. "This in an environment that lends itself to gold."Dalio has been advocating for investors to own gold for some time, often more than the up to 5% allocation typically recommended. Gold (GC00) has struggled for direction during the war, but is up about 8% on the year so far, following i...

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