Wealthy Investors Shift to Gold and Crypto Amid Economic Uncertainty
UBS, a global asset management firm, has noticed a significant change in investment preferences among its high net worth clients. These clients are moving away from the U.S. dollar and its related assets, opting for alternative investments like gold and cryptocurrencies.
Amy Lo, co-head of UBS Group’s Asian Wealth Management, shared this trend during an interview at the Bloomberg New Voices event in Hong Kong. Lo explained that wealthy investors are increasingly favoring alternative assets and Chinese assets due to economic volatility.
Lo highlighted that gold is particularly popular now. Investors are also diversifying their portfolios, moving away from a U.S.-centric approach. They are exploring Chinese yuan and yuan-backed assets to reduce reliance on the dollar.
Recent data shows the Chinese yuan outperforming the U.S. dollar. By May 13, 2025, the yuan had strengthened to about 7.201 per dollar. Simultaneously occurring, the U.S. Dollar Index saw a slight drop.
Bitcoin and gold have also seen significant gains.Bitcoin crossed $105,000 after a U.S.-China trade tariff pause, while gold hit a record high of $3,390 in April due to geopolitical tensions.
These shifts reflect a broader trend towards alternative safe-haven assets, driven by economic uncertainty and trade tensions.
