At the Hubbis Digital Dialogue held on May 29, senior wealth management professionals convened to explore how gold—whether physical, ETF-based, or tokenised—is being adopted across the region. The event, titled Gold 360° – Empowering Wealth Advisers to Guide HNW Clients, highlighted evolving client preferences and the increasing need for adviser-led education in a fragmented landscape of gold investment options.
Gold’s Enduring Appeal Amid Shifting Preferences
Gold continues to serve as both a strategic hedge and a trusted store of value. Central banks remain net buyers, while retail and institutional demand—especially in China—shows no signs of abating.
Ray Jia, Head of Research for China at the World Gold Council, noted that Chinese investors typically see gold as a hybrid between savings and investment. “Gold continues to serve as a store of value and long-term savings tool in China,” he said, adding that digital platforms are enabling greater access for younger investors.
Globally, concerns over inflation, currency instability, and market volatility are prompting renewed interest in gold as a stabilising force within diversified portfolios.
Physical Gold: Privacy, Control, and Legacy Planning
For HNW and UHNW clients, direct ownership of physical gold retains strong appeal. Privacy, control, and jurisdictional sovereignty remain critical factors in choosing this format.
Joshua Rotbart, Founder and Managing Partner at J. Rotbart & Co., reported that his clientele—comprising private individuals and family offices—largely prefer physical bullion over paper or digital proxies. “Our clients want physical allocation,” he said. “The emphasis has shifted from speculative interest to long-term intergenerational preservation.”
Singapore, Hong Kong, and Switzerland continue to be preferred storage jurisdictions, with clients increasingly demanding transparency in logistics and authentication. “They want to see the bar numbers,” Rotbart added, highlighting rising due diligence expectations.
ETFs: Efficient, Regulated Exposure for Tactical Allocation
Exchange-traded funds (ETFs) remain the most common vehicle for institutionalised gold exposure. They offer liquidity, regulation, and ease of integration into managed portfolios.
Neil Broadbent, APAC iShares Equity Product Strategist at BlackRock, explained that ETFs are particularly suitable for discretionary mandates and model portfolios. “Clients use gold for diversification, inflation protection, and portfolio stability,” he said. Allocations of 3–5% are becoming increasingly typical among clients sensitive to macroeconomic shifts.
While physical gold offers permanence, ETFs provide flexibility. Broadbent added that more adviser-led education is needed to clarify differences in format, cost, and custody.
Tokenised Gold: Bridging Tradition and Innovation
As blockchain technology reshapes financial services, tokenised gold is emerging as a viable alternative for digital-native clients seeking fractional ownership with real-asset backing.
Cici Lu, Head of Research at Matrixdock, described tokenised gold as a “bridge between traditional finance and digital innovation.” Matrixdock’s XAUm token is fully backed by LBMA-accredited bullion and regularly audited, offering transparency and flexibility.
Lu highlighted increasing interest from family offices and next-generation clients. “They want regulated, transparent digital solutions that provide real ownership,” she said.
Client Education: The Missing Link
Despite gold’s broad appeal, the lack of client education remains a significant barrier to wider adoption. Many HNW clients still perceive gold in emotional or legacy terms, unaware of the differences between physical, ETF, and tokenised options.
The consensus among speakers: advisers must adapt their messaging to generational needs. While older clients focus on legacy and security, younger investors prioritise agility, transparency, and digital access. Helping clients understand both the “why” and the “how” of gold investment is increasingly essential.
Insights from the Field: Survey of Wealth Managers
To complement the webinar, Hubbis conducted a mini-survey in May 2025 across its Asia-based wealth management community. Responses from private bankers, external asset managers, and insurance advisers revealed evolving positioning trends for gold in HNW portfolios.
Strong Demand, Limited Understanding
While 48% of respondents said clients already show interest in gold, 38% indicated they must initiate the conversation. Just 14% said their clients rarely consider it. The findings confirm that while gold is widely respected, its practical relevance is often underexplained.
Delivery Formats: Tradition Dominates, Tokenisation Rising
Gold ETFs (34%) and physical bullion (25%) were the most recommended products. Tokenised gold followed at 22%, with structured products and gold mining equities lagging behind.
ETFs appeal to liquidity-conscious clients, especially younger investors. Physical gold remains the format of choice for legacy and crisis planning. Meanwhile, tokenised gold is gaining popularity among digital-first clients and second-generation wealth holders.
Allocation Trends: Gold as a Satellite Asset
Over half (51%) of advisers said clients typically allocate 3–5% of their portfolios to gold. Another 36% reported allocations below 3%, while just 8% indicated exposures above 5%. These figures underscore gold’s continued role as a non-core, tactical holding.
Motivations: Diversification, Preservation, and Fiat Skepticism
Portfolio diversification topped the list of client motivations (28%), followed by wealth preservation (11%) and inflation hedging (11%). Notably, 17% of respondents cited distrust in fiat currencies and political systems as a growing theme in client discussions.
Overcoming Adoption Hurdles: Clarity, Comparability, and Communication
The biggest challenge to broader gold adoption? Education. A full 68% of respondents cited the need for clearer, more comparative information across formats. Clients often struggle to grasp tokenisation’s regulatory and custody implications, despite its structural advantages.
Advisers also called for simpler, client-centric materials—such as visual explainers and real-life use cases—to make the topic more accessible.
Strategic Takeaways for Wealth Advisers
1. Match Format to Client Profile
Physical gold is best suited for clients focused on privacy, legacy planning, and crisis hedging.
Gold ETFs are ideal for tactical, liquid exposure with low transaction friction.
Tokenised gold appeals to digital-native clients seeking innovation without compromising on real-asset backing.
2. Lead with Education, Follow with Allocation
Advisers should explain gold’s role as a hedge, clarify product structures, and contextualise usage for legacy, diversification, or digital integration.
3. Reframe Gold as a Strategic Asset
Gold need not compete with equities or bonds; its value lies in behaving differently—providing portfolio stability during periods of heightened risk.
Looking Ahead: Gold’s Expanding Role in Wealth Portfolios
Speakers agreed that gold is not a relic but a modern, multi-format asset with increasing relevance in today’s global environment. Physical bullion remains foundational in Asia due to its tangibility and discretion. Tokenised gold, meanwhile, is making inroads with younger generations seeking a fusion of tradition and technology. ETFs continue to serve as the first port of call during market turbulence.
As the gold ecosystem matures, advisers will need to deepen their understanding of format-specific benefits, limitations, and regulatory nuances. Whether guiding clients toward privacy-centric bullion, liquid ETFs, or next-gen digital gold, the quality of advice will be critical.
“In a world defined by uncertainty,” one panellist concluded, “clients don’t just want gold—they want to know exactly what kind, where it is, and how fast they can get to it.”
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