Got Gold? If Not, You Don't Know History

What does Ray Dalio, the legendary founder of the world largest hedge fund, have to say about gold? In a recent exclusive interview with CNBC, Dalio says emphatically without any hedging of his recommendation:

I think gold should be a part of everybody's portfolio to some degree because it diversifies the portfolio... If your investment portfolio doesn't have at least 10% of the yellow metal, then you don't know history.

Wait a minute. The interviewer reminds Dalio that Warren Buffet, a more recognized investing legend, won't touch gold. Is he wrong? Dalio responds in a matter-of-fact manner, "I think he is making a big mistake, yeah." 

Dalio continues on making his case for owning gold:

Gold is like cash. It's an alternative version of cash. Money can be produced. Gold is somewhat limited (in that it can not be simply produced like cash). It's an alternative that should be part of everyone's portfolio but not in a big way. 

Dalio's bottom line: Know your history. Get some gold.