Ray Dalio: ‘There is only one gold.’ How this proven diversifier can protect you from market volatility

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For years, investors have argued over whether bitcoin — often dubbed “digital gold” — could actually replace the precious metal as the world’s go-to safe-haven asset in times of uncertainty. With cryptocurrencies gaining traction among investors and institutions alike, the comparison has become harder to ignore.

But billionaire investor Ray Dalio, who is also the founder of the world’s largest hedge fund, Bridgewater Associates, isn’t convinced.

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Speaking about the gold vs. bitcoin debate on the All In Podcast, Dalio said plainly that “there is only one gold,” emphasizing that the centuries-old store of value still stands in a category of its own (1).

Dalio isn’t anti-crypto — he’s said he owns a small percentage of bitcoin — about 1% of his portfolio (2). But he has argued that gold posses unique advantages as a hedge against inflation, debt and geopolitical shocks.

“I’m strongly preferring gold to bitcoin,” Dalio said in October last year on The Master Investor Podcast (3).

Dalio’s warning arrives at a time when global markets are facing an uncomfortable combination of rising debt, geopolitical friction and uncertainty about the future of traditional currencies.

Typically, the war in Iran would send investors running to this shining safe haven, but concerns over the benefits of liquidity vs. gold as a store of value have stemmed the usual surge, leading to pullbacks. However, President Donald Trump’s Mar. 23 announcement that the U.S. would not strike Iranian power plants resulted in a slight correction, according to Reuters (4).

But if Dalio is proven right in the end, investors may need to rethink how they’re protecting their wealth.

Gold’s historic 2025 rally didn’t happen in a vacuum.

The metal has historically performed well during periods of economic or geopolitical stress — and the past year delivered plenty of both.

Those forces helped propel gold to record highs through 2025 and into 2026.

By early January, the metal had surged past $5,000 per ounce, marking one of the strongest bull runs in its history. It remains to be seen if the precious yellow metal will return to previous highs, but prior to the new war in the Middle East, JPMorgan Chase anticipated that gold would strike a high of $6,300 per ounce by the end of 2026 (5).

Dalio has long argued that this is precisely when gold proves its value.

Speaking at the World Governments Summit in Dubai last month (6), he described gold as “the safest money” in uncertain environments and “a very effective diversifier” that “does uniquely well when the bad times come along.”

Another major driver has been central banks.

According to the World Gold Council, central banks purchased more than 1,000 tonnes of gold in each of the last three years (7), marking some of the largest buying sprees in decades as countries diversified their reserves away from traditional currencies like the U.S. dollar.

That institutional demand has added powerful momentum to gold’s rally. And it might continue in the near term.

Goldman Sachs expects central-bank purchases to average about 60 metric tons per month in 2025 as emerging-market economies continue shifting reserves toward gold (8).

Bitcoin has delivered spectacular returns at times — but also extreme volatility, slumping by over 18% year-to-date, according to Binance (9).

Sharp swings are nothing new for the world’s largest cryptocurrency. Bitcoin has suffered multiple price crashes exceeding 50% in past cycles, underscoring how quickly sentiment can shift in the crypto market.

The current crypto winter highlights that risk. Bitcoin fell nearly 50% from its peak in October last year to below $66,000 last month, according to CNBC (10).

“This is not a ‘bull market correction’ or ‘a dip,’” Matt Hougan, chief investment officer at Bitwise Asset Management, wrote.

“It is a full-bore, 2022-like, Leonardo-DiCaprio-in-The-Revenant-style crypto winter — set into motion by factors ranging from excess leverage to widespread profit-taking by OGs.”

That volatility is one reason Ray Dalio remains cautious about viewing bitcoin as a true safe-haven asset. Central banks hold vast reserves of bullion, he noted, while cryptocurrencies have yet to earn the same status.

“Bitcoin doesn’t have any privacy,” Dalio said. “Central banks are not going to want to buy bitcoin and be able to hold it.”

Dalio also flagged several risks he sees with bitcoin. He has warned that emerging technologies such as quantum computing could eventually pose security challenges for cryptocurrencies. The billionaire investor also noted that bitcoin “tends to have a pretty high correlation” with technology stocks, raising questions about whether it can truly serve as a diversifier.

That difference becomes especially important when markets turn turbulent. In times of crisis, institutions and governments still tend to rely on gold rather than digital assets.

Because of that role, Dalio believes investors should consider allocating part of their portfolios to the metal.

“One should have between five and 15% of their portfolio in gold because of the fact of how it works with the other components,” Dalio advised.

One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.

Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold.

If you opt for Priority Gold’s platinum package, you can get free account setup and insured shipping and storage for up to five years. Plus, you can also rollover your existing IRA or 401(k) into a precious metals IRA with Priority Gold — tax and penalty free.

What’s more, when you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.

While Dalio strongly favors gold as a hedge against economic uncertainty, he has also emphasized the importance of diversification across multiple asset classes.

Real estate, in particular, can play a powerful role in balancing a portfolio.

Unlike stocks or cryptocurrencies, property is a tangible asset that can generate consistent income through rent while also benefiting from long-term appreciation. During periods of inflation — when the purchasing power of cash declines — property values and rents often rise as well.

That makes real estate an attractive complement to assets like gold.

However, investing directly in property isn’t always simple. Buying real estate often means dealing with high upfront costs, mortgage payments, insurance and ongoing maintenance expenses. Landlords also have to handle the day-to-day responsibilities of property ownership, from finding reliable tenants to managing repairs and vacancies.

Those hurdles can make real estate feel out of reach for many.

Crowdfunding platforms like Arrived are changing that.

Backed by world-class investors like Jeff Bezos, Arrived lets you invest in shares of vacation and rental properties across the country with as little as $100.

Arrived distributes any rental income generated by properties to investors monthly, allowing you to potentially set up a passive income stream without doing any of the legwork. Investors also gain quarterly access to their newly launched secondary market, where you can buy and sell shares of individual rental and vacation rental properties directly on the platform.

The best part? For a limited time, when you open an account and add $1,000 or more, Arrived will credit your account with a 1% match.

Vacation rentals and single-family homes are just one slice of the real estate vertical. There are other options on the table: from multifamily to industrial.

Now, accredited investors can tap into that same approach through platforms such as Lightstone DIRECT, giving you access to institutional-quality multifamily and industrial real estate — with a minimum investment of $100,000.

Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest privately held real estate investment firms in the U.S., with more than $12 billion in assets under management.

Over nearly-four decades, their team has delivered strong, risk-adjusted performance across multiple market cycles — including a 27.6% historical net IRR and a 2.54x historical net equity multiple on realized investments since 2004.

With Lightstone DIRECT, you gain access to the same multifamily and industrial deals Lightstone pursues with its own capital .

Here’s the kicker: Lightstone invests at least 20% of its own capital in every deal — roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.

Dalio’s comments about gold and bitcoin ultimately point to a broader investing principle: no single asset can shield a portfolio from every market shock.

Instead, it’s about diversification. A well-balanced portfolio may include traditional safe havens like gold, tangible assets such as real estate and — for some investors — higher-risk opportunities like cryptocurrencies.

The key is finding the right balance for your personal financial situation. A financial professional can help evaluate your goals, time horizon, and risk tolerance to determine which investment mix makes the most sense.

You can find a reputable financial advisor near you for free through Advisor.com.

Simply answer a few questions about yourself and your financial situation and goals, and their AI-powered technology will match you with a vetted FINRA/SEC-registered expert best suited to help you.

From there, you can set up a free, no-obligation consultation to see if they’re the right fit for you.

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

All-In Podcast (1); CoinDesk (2); @Master Investor (3); Reuters (4, 5); CNBC International Live (6); World Gold Council (7); The Street (8); Binance (9); CNBC (10)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.