Money Talks News may earn commission or revenue through links in the content below. Our editorial team independently selects all products. Compensation does not influence our recommendations.
Billionaire Ray Dalio just told a podcast audience he’d rather own gold than Bitcoin — and he’s not the type to whisper it. On a July 30 appearance, the founder of the world’s largest hedge fund said he still keeps only about 1% of his money in Bitcoin and prefers the metal, warning that crypto could someday be undermined by quantum computing and monitored or taxed by governments (1).
I’ve been investing for 45 years. I started out as a stockbroker, and I’ve traded through Black Monday in 1987, the dot-com bust, 2008, and the 2020 crash. I’ve watched people reach for every “safe haven” there is — and I’ve watched who actually came out ahead.
So let me say it plainly: On the big question, Dalio’s right. Gold has done what a hedge is supposed to do. It climbed about 66% in 2025 — its best year since 1979 (2) — and touched a record $5,597 an ounce this past January (3).
But whether gold makes you money or costs you money comes down to things Dalio breezes right past. The metal has already slid from that peak to just over $4,000 (3)(4), and a lot of experts are suggesting this might be a good entry point.
But here are three things Dalio’s not telling you — and they’re the difference between profiting from gold and getting burned by it.
1. The pros already own it before the crisis hits
Here’s the usual knock on gold: it pays you nothing. No dividend, no interest, no rent. It just sits there.
That’s true — but it’s not a flaw, it’s the job description. Stocks are how you build wealth; gold is how you keep it. From 1971 to 2024, stocks returned about 10.7% a year to gold’s 7.9% (4). Gold was never meant to out-earn your portfolio. It’s meant to hold the line when everything else is getting cut in half.
That’s the mistake I’ve watched people make in every crash since 1987. They wait until the market’s already falling apart to reach for protection, and by then it’s expensive or too late. The ordinary Americans quietly moving into gold now aren’t chasing a rally. They’re buying the protection before they need it.
One thing before we keep going — the financial world is louder and dumber than ever. Hot takes everywhere. Almost none of it is worth your time. I’ve spent 35+ years cutting through the noise so you don’t have to. Sign up for the free Money Talks Newsletter — 10 seconds, no spam, just the stuff that matters.
2. The pros keep their gains. The amateurs hand a chunk to the IRS.
When Dalio says “gold,” he means the concept. But how you hold it decides how much you keep — and this is where most first-time buyers quietly lose money.
Here’s the part that actually costs people: The IRS generally taxes physical gold as a collectible, with long-term gains hitting as high as 28% — steeper than the top rate on most stock gains.
The difference between a buyer who keeps their gains and one who hands a slice to the IRS often comes down to one thing: the account they hold it in.
A gold ETF is a paper claim you don’t physically control. A coin in a drawer is yours, but it’s taxed as that collectible. Hold the real metal inside a retirement account built for it, though, and you get the tangible asset with the tax treatment of an IRA.
For example, a Gold or Silver IRA from partner Anthem Gold Group makes the metals part of your retirement, tax-advantaged.
Is your entire retirement riding on paper?
Be aware of the company you’re dealing with. Some aren’t as good as others. Anthem Gold is a solid choice. Endorsed by Brian Kilmeade of Fox News, Anthem was also named America’s #1 Trusted Gold IRA Company by TrustLink, a platform that gathers honest customer reviews from thousands of businesses.
To learn more, talk to an expert. Click here to request a free guide from Anthem — and enter a phone number you’ll actually answer. An Anthem specialist will call to walk you through your options, no obligation. That conversation is where your questions get answered.
Or, you can just call them right now, or any time, at 888 718-3963.
3. The pros size it like insurance — not like a jackpot
Remember that drop from $5,597 to around $4,040? That’s roughly a 28% haircut in a few months (3)(4). The people it burned are the ones who treated gold like a jackpot and bet big at the top.
Here’s the number Dalio actually gives that the hype machine cuts out: He recommends gold as 5% to 15% of a portfolio (5) — not all of it, not half of it.
I agree. I’ve owned gold for many years, but it’s a small part of my overall savings.
Gold is the slice that holds steady so you’re not forced to sell your good investments at the bottom. So own it like a pro. Size it at 5% to 15%. Buy it in stretches instead of all at once, so one bad month doesn’t define your whole position. Even the experts arguing over where gold goes next agree on that much: Steady beats heroic.
If you’ve decided a measured slice of physical gold belongs in your retirement, Anthem Gold is one place to get a free guide and talk it through before you commit a dollar.
The bottom line
Dalio’s right. Gold has earned its spot as a hedge, and the forces behind this run — heavy debt, a shaky dollar, central banks buying by the ton (6) — aren’t fading anytime soon. Dalio’s been blunt that when it comes to a real store of value, there’s ultimately no substitute (7).
But being right about gold and being smart about gold are two different things. The people who profit treat it like insurance: a measured slice, bought steadily, held in an account that lets them keep what it earns. The people who get burned buy the headline at the top and wonder where their money went.
Own it the first way. Because gold was never going to make you rich — it’s there so a bad year can’t make you poor. Get that part right, and the next time the market has a heart attack, you’ll be the calm one in the room.
Sources: Bitcoin Magazine (1); Fox Business (2); Forbes Advisor (3); Fortune (4); Yahoo Finance (5); Money (6); CoinDesk (7).
Add a Comment