During an interview with CNBC, Dalio pointed to gold’s utility as a store of value, while adding that both gold and silver are showing signs of recovery after the recent sell-off.
- Dalio said that central banks, sovereign wealth funds, and governments should keep a “certain percentage” of their investments parked in gold to diversify their risks.
- He also warned that the world is on the brink of a capital war, when money is weaponized using measures such as trade embargoes and blocking access to the capital markets.
- Among Dalio’s concerns is the Trump administration’s recent push to bring Greenland, a Danish territory, under U.S. control for its “national security” needs.
Bridgewater Associates founder Ray Dalio on Tuesday reportedly backed gold as a hedge against capital wars in which controls are placed on foreign exchange and capital.
During an interview with CNBC at the World Governments Summit in Dubai, the investor pointed to gold’s utility as a store of value, while adding that both gold and silver are showing signs of recovery after the recent sell-off.
“Because gold is a diversifier, when the bad times come along, it does uniquely well, and when the good times are prosperous, less so, [but] it’s an effective diversifier. I’d say the most important thing is [to] have a well-diversified portfolio,” Dalio added, according to the report.
The investor said that central banks, sovereign wealth funds, and governments should keep a “certain percentage” of their investments parked in gold to diversify their risks.
Weaponization Of Money
Dalio also warned that the world is on the brink of a capital war, in which money is weaponized through measures such as trade embargoes and restrictions on access to capital markets. Among Dalio’s concerns is the Trump administration’s recent push to bring Greenland, a Danish territory, under U.S. control for its “national security” needs.
“We are on the brink. That means not in, but it means we are quite close to [capital war], and it would be very easy to go over the brink into a capital war, because there are mutual fears,” he said, according to the report.
He added that capital controls are taking place all over the world right now, which is historically a trait he has observed in capital wars.
The Mistake People Make With Gold
Dalio also pointed to concerns among people about gold’s trajectory amid near- to mid-term price movements in the yellow metal.
“Gold is up about 65% from a year ago, and down about 16% from its high, and I think people make the mistake of thinking, is it going to go up and down, and should I buy it?” he said, according to the report.
While silver prices soared nearly 67% since the beginning of 2026, a recent sell-off has brought those gains to nearly 21% year to date. Gold prices rose nearly 29% during this period, before giving up some of the gains to hover 14% higher YTD.
Where Are Gold And Silver Headed To?
After recent volatility in gold and silver prices, analysts at ING Think noted that the price trajectory of the two metals will depend on how Chinese investors respond to last week’s decline.
“Price direction in the near term will hinge on the extent of dip‑buying from Chinese investors following Friday’s retreat. With volatility spiking and the Lunar New Year approaching, traders are likely to pare back positions and reduce risk,” the firm stated in a recent note.
Meanwhile, the SPDR Gold Shares ETF (GLD) was up 5.52% at the time of writing, while the iShares Gold Trust ETF (IAU) rose 5.46%. Retail sentiment on Stocktwits around the GLD ETF was trending in the ‘extremely bullish’ territory at the time of writing.
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