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

Core Viewpoint - The article discusses the increasing significance of gold as a store of value amid rising inflation, political turmoil, and economic uncertainty, predicting that gold prices could reach $5,000 per ounce by 2026 [4][12]. Economic Context - The U.S. dollar has seen a 90% decline in purchasing power since abandoning the gold standard in 1971, with a significant increase in money supply contributing to this decline [1]. - The U.S. national debt has reached a new high of $38.5 trillion, with a budget deficit of $1.8 trillion for fiscal year 2025, raising concerns about further devaluation of the dollar [8]. Investment Insights - Ray Dalio, founder of Bridgewater Associates, suggests that investors should consider increasing their gold allocation to 15% of their portfolios due to the current economic climate, which contrasts with traditional advice of keeping it at 5% [9][16]. - Gold has appreciated by 67% in 2025, driven by investor demand during periods of high inflation and economic uncertainty [6][7]. Gold Market Dynamics - Gold is recognized globally as a scarce resource, with only 216,265 tons extracted throughout history, making it a reliable store of value [3]. - The SPDR Gold Trust, a major gold ETF, manages $146 billion and offers investors a convenient way to gain exposure to gold without the challenges of physical storage [14]. Future Projections - The article predicts that gold could reach $5,000 per ounce in 2026, providing a potential return of nearly 14% for investors who buy at the current price of $4,400 per ounce [12]. - The conditions for gold to achieve above-average returns in 2026 are favorable, given the expected continuation of a trillion-dollar deficit and elevated inflation [11].