Ray Dalio says gold is the 'safest money' even after historic crash

Ray Dalio defended gold as the "safest money" even after its recent sharp drop, saying the metal's haven status does not "change by the day." He made the comments while speaking at the World Governments Summit in Dubai. Dalio pointed to gold's large presence in central bank reserves and noted bullion surpassed the euro as the second-largest reserve asset last year.

He said the metal is down about 7% from its all-time high but up about 71% over the past year, and that it plunged roughly 12% on one trading day last week. The recent sell-off followed President Trump's nomination of Kevin Warsh for Fed chair, which prompted investors to reprice rate and dollar expectations and unwind metal positions.

Dalio said gold serves as a diversifier and a hedge in bad times and warned the US is "on the brink" of a capital war. He suggested investors focus on how much of a portfolio should be allocated to gold rather than trying to time short-term moves, and has in the past recommended allocating 15% of portfolios to gold and bitcoin.

ray dalio, gold, safest money, recent sharp drop, world governments summit, dubai, central bank reserves, bullion, surpassed the euro, second-largest reserve asset, down about 7%, up about 71%, plunged roughly 12%, kevin warsh