Ray Dalio says gold should be 5% to 15% of your portfolio — and there are several ways for Canadian investors to add it in

His advice is direct: consider holding between 5% and 15% of your portfolio in gold.

“You want to come out of this with a win,” Dalio said in a recent CNBC interview (1). He pointed to gold as an “effective diversifier” at a time of heightened geopolitical and economic uncertainty (2).

Why Dalio sees stagflation as the real risk

Stagflation is one of the most challenging environments for investors because it puts pressure on both sides of a traditional portfolio. Stocks can struggle as growth slows, while bonds lose value if inflation stays elevated. That leaves fewer places to hide — and increases the need for assets that can hold their ground.

For Canadians, the stagflationary risk is real. Inflation — as measured by the Consumer Price Index (CPI) — was 2.4% year-over-year in March 2026, still above the Bank of Canada’s 2% midpoint target (3). At the same time, the ongoing tariff dispute between Canada and the United States has added a layer of economic uncertainty that isn’t going away quickly.

The BoC has already cut its key policy rate several times since mid-2024 in an effort to cushion slowing growth (4). But as Dalio has cautioned, cutting rates too soon, or too aggressively, can undermine confidence in fighting inflation and make markets more volatile. The BoC faces the same difficult balancing act.

In other words, the usual playbook may not apply right now.

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Why gold tends to shine in uncertain times

Gold has long been considered a hedge against inflation and a store of value during periods of instability. Unlike stocks or bonds, it isn’t tied directly to corporate earnings or interest rates — which can make it a useful counterbalance when traditional assets are under pressure.

That’s why Dalio’s suggested allocation of 5% to 15% is important. He’s not recommending a heavy bet on gold, but rather using it as a stabilizer within a broader portfolio.

Gold has historically performed well during periods of high inflation, currency volatility and geopolitical stress — all conditions that appear to be in play today. The loonie’s sensitivity to trade uncertainty and commodity prices make gold’s non-correlated nature particularly effective for Canadian investors.

How Canadian investors can follow Dalio’s strategy

For most investors, adding gold exposure doesn’t mean buying and storing physical bars. Several alternative options exist on Canadian exchanges.

Gold-focused exchange-traded funds (ETFs) are among the most accessible routes. The iShares Gold Bullion ETF (CGL.C) trades on the Toronto Stock Exchange (TSX) and tracks the price of gold bullion directly (5). The Sprott Physical Gold Trust (PHYS) also trades on the TSX and holds allocated physical gold, giving investors direct exposure without the hassle of storage (6).

For investors who prefer a managed approach, gold-focused mutual funds — available through most major Canadian banks and investment dealers — provide precious metals exposure as part of a diversified strategy.

Mining stocks represent another option. Canadian companies such as Barrick Gold (ABX) and Agnico Eagle Mines (AEM) trade on the TSX and can offer leveraged exposure to gold prices — though they tend to be more volatile than bullion-backed ETFs (7). Every option comes with its own trade-offs.

Don’t overlook your TFSA and RRSP

One advantage Canadian investors have over their American counterparts is the ability to hold gold ETFs inside a Tax-Free Savings Account (TFSA) or a Registered Retirement Savings Plan (RRSP). Both accounts accept eligible Canadian ETFs, including gold bullion funds listed on the TSX (8).

Holding a gold ETF inside a TFSA means any capital gains from price appreciation are completely tax-free. Inside an RRSP, gains are sheltered from tax until withdrawal — allowing the investment to grow in a tax-advantaged environment. This is a meaningful advantage for long-term investors looking to build gold exposure without triggering annual tax events.

Be sure to not overdo it

Dalio’s recommendation also comes with an important caveat: balance.

Gold can help diversify a portfolio and reduce risk, but it doesn’t produce income the way dividends or bond interest do. Too much gold can reduce long-term growth potential if other assets outperform (9) — so his suggested range, rather than a fixed number, matters. It gives investors the flexibility to adjust based on their risk tolerance, time horizon and market outlook.

A financial adviser can help you determine what percentage makes sense for your specific situation.

What Canadian investors can do next

If Dalio’s warning resonates, here are a few steps to consider:

Review your current allocation. Check whether your portfolio includes any exposure to gold or other real assets. If it doesn’t, even a small position — say, 5% — could add meaningful diversification.