Why the world's ultra rich never treat gold like investments, but like art or antiques

Dubai: Gold may be shining brighter than ever this year, but among the world’s wealthiest investors — family offices managing billions — it’s barely more than a collectible.

According to a new report by Liechtenstein-based asset manager Incrementum, ultra-high-net-worth families continue to treat gold like they would art, antiques, or rare collectibles. Despite its 25% rally between January and April this year, gold still makes up just 1% of family office portfolios — the same level as infrastructure or fine wine.

Instead, big-ticket investors still favour private equity, real estate, and even cash. The trend underlines how, for the ultra-wealthy, gold is a store of value — but not necessarily a growth asset.

This is in stark contrast to retail investors, including many in the UAE, who often see gold as a defensive play when markets wobble. The metal has surged in popularity regionally as a hedge against rising living costs, currency fluctuations, and geopolitical instability — particularly in a year of volatile headlines, trade war concerns, and uncertain central bank policies.

Globally, gold’s rise earlier this year was fuelled by safe-haven buying amid trade tensions and fears over US fiscal health. But with signs that U.S.-China trade negotiations are stabilising and inflation pressures moderating, some of the safe-haven demand has ebbed.

As a result, prices have cooled slightly — though still remain elevated. Spot gold was trading around $3,360 an ounce, with UAE retail prices over the weekend at Dh404.75 per gram for 24K gold, and Dh374.75 for 22K. (Check live gold rates here.)

The World Gold Council noted that in Q1 2025, investment demand spiked 170% year-on-year — reflecting how smaller investors rushed to gold when market anxiety was high. But institutional money has stayed cautious, treating the metal more as insurance than investment.

For family offices, diversification means taking calculated bets on innovation, tech, and venture capital — not stacking gold bars in vaults.

So while gold glitters in headlines, among the mega-wealthy, it remains more gallery than growth — a shiny, strategic afterthought.