I Predict Gold Will Cross $5,000 Per Ounce in 2026. Here's How Much You Should Buy, According to Hedge Fund Legend Ray Dalio

Gold has been a wide recognized store of worth for thousands of years, which is wherefore investors bargain it manus implicit fist during periods of precocious inflation, governmental turmoil, and economical uncertainty. All 3 of those issues are contiguous successful 2025, truthful it's nary astonishment that the shiny yellowish metallic is sitting connected a year-to-date summation of 67%.

That's overmuch higher than gold's mean yearly instrumentality of 7.96% implicit the past 30 years, which speaks to the concern community's anxiousness astir the existent climate. In fact, erstwhile speaking astatine the Greenwich Economic Forum successful October, billionaire Ray Dalio said investors should see parking an unusually precocious percent of their portfolios successful golden close now.

Dalio is the laminitis and erstwhile CEO of Bridgewater Associates, a salient hedge money with a estimation for delivering affirmative returns successful each marketplace environments. I deliberation his proposal mightiness beryllium worthy taking, due to the fact that I foretell golden volition scope $5,000 per ounce successful 2026.

Governments, cardinal banks, and investors successful practically each state astir the satellite ain astatine slightest immoderate gold, truthful determination is simply a wide statement astir its presumption arsenic a store of value. Scarcity is simply a cardinal crushed why. There is simply a fixed magnitude of golden connected Earth, and we can't nutrient immoderate much erstwhile it's each retired of the ground. Humans person lone extracted 216,265 tons of the yellowish metallic passim history, compared to billions of tons of different commodities similar ember and robust ore.

In the past, galore countries pegged the worth of their home currencies to gold. It required governments to ain capable carnal metallic to lucifer their currency reserves, which constricted the magnitude of caller wealth they could print, frankincense keeping economical headwinds similar ostentation nether control.

Even the U.S. was connected the alleged golden modular until 1971. Since the U.S. abandoned that modular 5 decades ago, wealth proviso has exploded, fueling a staggering 90% diminution successful the purchasing powerfulness of the U.S. dollar. The illustration beneath shows a wide nexus betwixt the terms of gold, the summation successful wealth supply, and the alteration successful the purchasing powerfulness of the U.S. dollar implicit the past fewer decades.