“in a scenario where the dollar collapses, you would immediately lose 40% as the cash becomes worthless”
****
If you read his book, he’s betting the increase in the value of gold will more than offset the loss in value of the dollar. In other words, if the dollar immediately loses half its value, he’s looking at gold in the $7,000 per oz. range. If you hold 20% gold and 30% cash, you’re on the upside after the crash.
then why only have 20% gold? why not 40%?