Billionaire Ray Dalio drops a clear message on gold

Speaking in World Summit of Governments in Dubaibillionaire Ray Dalio kept it simple.

Despite the negative chatter after gold’s recent pullback, Dalio feels the bright yellow metal is gold is still “the safest money.”

He went on to say that the global system is effectively moving closer to “capital war,” in which money itself becomes a source of conflict.

Over the past month, there has been a ton of activity in the precious metals, with gold and silver continuing to rise despite strong pullbacks. Despite the volatility, Gold is still trading near 8% higher month on month.

It is important to note that he hit an all time high of $5,608.35 in January it previously stumbled on the back of Fed-led dollar strength, but buyers returned anyway.

Well, I covered Dalio recently after Davoswhere he took a similar opinion, arguing that the allocation 5% to 15% of portfolio to gold it makes sense given the fragility of the market.

In Dubai, he essentially reiterated his view, dismissing concerns that gold is losing relevance.

Ray Dalio says gold remains safest money as global debt pressures raise risk of capital conflictPhoto by Bloomberg on Getty Images” loading=”eager” height=”640″ width=”960″ class=”yf-lglytj loaded”/>
Ray Dalio says gold remains safest money as global debt pressures increase risk of capital conflictPhoto by Bloomberg on Getty Images · Photo by Bloomberg on Getty Images

By using spot gold around $4,931/oz (February 5, 2026) as the baseline:

  • JP Morgan: $6,300/oz (end 2026)around 27.8% up.

  • Wells Fargo Investment Institute: $6,100 to $6,300/oz (end 2026)around 23.7% to 27.8% head.

  • UBS: $6,200/ozaround 25.7% up (also $5,900/oz (end 2026)around 19.6% overhead).

  • Bank of America: $6,000/oz (by spring 2026)around 21.7% up.

  • Goldman Sachs: $5,400/oz (end 2026)around 9.5% overhead.

Dalio’s sharp take on gold and the markets is telling because he’s not just a TV trainer filling up airtime.

More Gold:

The legendary founder fund manager Bridgewater Associates in 1975turn it into a macro machine that. At its peak, it became the most valuable hedge fund globally, managing roughly $154 billion in assets from December 2020.

Dalio speaks much more freely these days, having stepped down as CEO of Bridgewater in 2017, stepped down as chairman in 2021, and fully relinquished control by the end of 2022. Needless to say, his opinions remain clear and sharp, focusing on debt cycles, currencies, and the plumbing of financial markets.

In addition, as per ForbesDalio boasts a net worth of approx $15 billion–$16 billion, puts him in the upper echelon of investors.

Related: Deutsche bank reaffirms end-2026 gold price target

  • 2020: Gold + 25.75%; Bitcoin +303.09%; S&P 500 (total return) +18.40%.

  • 2021: Gold -3.73%; Bitcoin + 59.71%; S&P 500 (total return) +28.71%.

  • 2022: Gold +2.08%; Bitcoin -64.27%; S&P 500 (total return) -18.11%.

  • 2023: Gold +13.14%; Bitcoin + 155.41%; S&P 500 (total return) +26.29%.

  • 2024: Gold +27.20%; Bitcoin +120.98%; S&P 500 (total return) +25.02%.

  • 2025: Gold +64.60%; Bitcoin -6.33%; S&P 500 (total return) +17.88%.

  • Compound return (2020–2025): Gold +192.7%; Bitcoin + 1,116.1%; S&P 500 (total return) +132.3%.
    Sources: Ychart, StatMuse

Dalio’s case for the shiny yellow metal hinges on how polarized and fragile the global financial system has become.

Related: Palantir CEO delivers short 8-word message to investors

He feels that gold is not a momentum asset (as it is currently treated), but rather what he considers to be the “second largest reserve currency” in the world.

Having said that, he argues that policy makers and large capital allocators are essentially making a category mistake by failing to consider portfolio positioning.

So clearly this is not about price targets, but about what effectively protects gold against an environment characterized by rising debt, geopolitical tension, and armed capital flows.

In addition, Dalio mentions “imminent”capital war” whose conditions are effectively in place.

These include a mutual distrust between capital holders and issuers, sanctions, and the normalization of capital controls. In such a case, assets linked to a particular government or currency become incredibly vulnerable.

In that situation, gold functions much more like insurance than investment.

So he can do in good times but offers great prospects when the system goes wrong, as it did during the past year.

Related: Morgan Stanley gives a clear verdict on the Fed pick War

This story was originally published by TheStreet on February 5, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

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