Billionaire Ray Dalio drops blunt message on gold

speak at the meeting Dubai World Government SummitBillionaire Ray Dalio keeps it simple.

Despite the negative rhetoric following gold’s recent pullback, Dalio believes the shiny yellow metal is on track to Gold remains the “safest currency.”

He went on to say that the global system is actually getting closer to “capital war” where money itself becomes a source of conflict.

There has been a lot of activity in the precious metals markets over the past month, with gold and silver continuing to rise despite sharp pullbacks. Gold trades close despite volatility Increased 8% month-on-month.

Notably, it hits All-time high $5,608.35 Prices stumbled in January on the strength of the U.S. dollar driven by the Federal Reserve, but buyers came back.

Also, I recently covered Dario davoshe also holds a similar view, believing that distribution 5% to 15% of portfolio in gold This makes sense given the fragility of the market.

In Dubai, he largely reiterated his views, ignoring concerns that gold is losing relevance.

Ray Dalio says gold remains the safest currency as global debt pressure increases risk of capital conflictsPhoto by Bloomberg via Getty Images · Photo by Bloomberg via Getty Images

use Spot gold is approximately US$4,931 per ounce (February 5, 2026) As a baseline:

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

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

• UBS: $6,200/ozabout 25.7% upside potential (return $5,900/oz (end 2026)about 19.6% upside potential).

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

• Goldman Sachs: $5,400/oz (end 2026)about 9.5% upside potential.

Dalio’s sharp take on gold and markets resonates because he’s more than just a TV pundit filling air time.

More gold:

Founded by legendary fund manager Bridgewater Investments in 1975turning it into a macro machine. At its peak, it became the world’s most valuable hedge fund, with approximately $154 billion in assets As of December 2020.

After Dalio resigned as CEO of Bridgewater Associates in 2017, stepped down as chairman in 2021, and handed over full control at the end of 2022, he now speaks more freely. Needless to say, his views remain blunt and pointed, focusing on the debt cycle, currencies and financial market pipelines.

Furthermore, according to ForbesDario has approx. US$15 billion to US$16 billion, Putting him in the upper echelon of investors.

Related: Deutsche Bank reiterates end-2026 gold price target

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

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

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

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

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

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

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

Dalio’s view on the shiny yellow metal hinges on how polarized and fragile the global financial system is.

RELATED: Palantir CEO has brief 8-word message to investors

He believes gold is not a momentum asset (as it is currently treated), but rather what he considers the world’s “second largest reserve currency.”

In saying this, he believes policymakers and large capital allocators are essentially making a category error by not taking portfolio positioning into account.

Obviously, this is not about price targets, but about how effectively gold can withstand an environment of rising debt, geopolitical tensions and weaponized capital flows.

In addition, Dalio also mentioned the imminent “capital war”, the conditions are actually met.

These include The normalization of mistrust, sanctions and capital controls between capital holders and issuers. In such circumstances, assets tied to a particular government or currency become extremely vulnerable.

In this case, gold functions more like insurance than an investment.

So it may lag behind the good times, but offers huge returns When things go wrong with the system, like it has over the past year.

RELATED: Morgan Stanley delivers blunt verdict on Fed pick Warsh

This article was originally published by TheStreet on February 5, 2026, and first appeared in the Investment section. Click here to add TheStreet as your preferred source.