Hong Kong investors triple gold holdings per HSBC

Wealthy investors in Hong Kong have nearly tripled their gold allocations over the past year, marking a dramatic shift toward safe-haven assets amid escalating geopolitical tensions and market volatility. According to a newly released survey by HSBC, individuals with investible assets ranging from US$100,000 to US$2 million now hold 11% of their portfolios in gold and other precious metals, up from just 4% a year ago.

The trend is even more pronounced on the Chinese mainland, where gold allocations have surged to 15%, more than double last year’s 7%. This growing appetite for gold reflects broader global sentiment. HSBC’s survey, which spanned over 10,000 investors across 12 key markets, including the US, UK, Hong Kong, and mainland China, found that average global allocations to gold have climbed by six percentage points to 11% in just 12 months.

The renewed focus on gold is closely tied to its stunning performance in 2025. Gold was trading at US$3,356.61 per ounce on Thursday, having surged 28% year to date, with prices briefly touching an all-time high of US$3,500 in April. The rally followed fresh global trade tensions, spurred by a wave of tariffs imposed by US President Donald Trump, which rattled equity markets and revived investor interest in traditional safe havens.

The movement toward gold isn’t limited to retail investors. Central banks have continued their aggressive accumulation of gold, adding 20 tonnes to reserves in May alone. Notably, the National Bank of Kazakhstan purchased seven tonnes, while the People’s Bank of China added three tonnes.

This builds on a sustained multi-year trend. Over the past three years, central banks have consistently purchased more than 1,000 tonnes of gold annually - more than double the 400–500 tonnes per year average during the previous decade.

A recent World Gold Council survey underscores the momentum: 95% of central banks believe global official gold reserves will rise, and 43% plan to increase their own holdings within the next 12 months, largely in response to dollar exposure concerns and rising economic risks.

Beyond gold, investors are rethinking portfolio composition more broadly. The HSBC data reveals a significant global shift away from cash. Cash and cash equivalents have fallen from 33% to 20% of portfolio allocations over the past year. In Hong Kong, the drop is even sharper - from 34% to 20%.

Meanwhile, allocations to fixed income and bonds have declined, with investors redistributing capital into cryptocurrencies, equities, real estate, and of course, precious metals. In Hong Kong:

• 47% of respondents currently hold stocks

• 32% maintain time deposits

• The most favored equities for the coming year include mainland Chinese stocks, followed by those in the US and Asia-Pacific markets.

The boom in gold prices is also revitalizing the mining sector. Several Chinese gold mining firms have raised significant funds via initial public offerings in Hong Kong, leveraging investor enthusiasm.

One standout example is Chifeng Jilong Gold Mining, the country’s largest non-state-owned gold producer. Since its March IPO, the company’s stock has nearly doubled, reflecting heightened demand and robust sentiment toward the gold mining industry.

As veteran resource investor Rick Rule notes, a structural shift in investor behavior toward gold could have profound implications - not only for gold prices but for the broader financial landscape.

Source- The Silver Academy

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