Billionaire families across Asia are deepening their involvement in the gold market, moving beyond traditional holdings like index trackers and vault storage to directly financing, shipping, and trading physical gold. This resurgence in gold trading, driven by a robust bullion rally, is reshaping how Asia’s ultra-wealthy manage their wealth.
Some family offices in the region are bypassing intermediaries entirely, engaging in a full spectrum of gold-related activities. Cavendish Investment Corp., a multi-family office led by a former Hong Kong jewelry company chairman, has allocated roughly one-third of its portfolio to physical gold trade this year. Other key players include precious metals dealers J. Rotbart & Co. and Goldstrom, who are partnering with wealthy families to tap into this booming market.
Cavendish sources gold from small-scale mines in Africa, including Kenya, transports it to Hong Kong for refining, and then sells it to affluent clients throughout Asia and strategic buyers in China. “It’s a seller’s market,” said Jean-Sebastien Jacquetin, managing partner at Cavendish. “We believe we have a window of about a year to capitalize on this opportunity.”
Historically, gold served primarily as a passive hedge for ultra-high-net-worth investors. However, current global uncertainties—ranging from inflation and geopolitical tensions to erratic central bank policies—have fueled an explosion in demand. According to a 2025 HSBC survey, Hong Kong investors more than doubled their gold allocations within a year, with mainland China’s affluent increasing theirs from 7% to 15%.
Asian families tend to understand gold’s value more intimately than their Western counterparts, given its longstanding cultural significance, explained Joshua Rotbart, founder of J. Rotbart & Co. Many have turned to bullion leasing, earning 3% to 4% returns by lending gold to jewelers, effectively turning the traditionally non-yielding asset into a steady income source. Others engage in profit-sharing ventures or arbitrage strategies, buying discounted gold bars in Dubai and selling them at premiums in Hong Kong’s highly active market.
Physical gold also serves as collateral for loans used to invest in assets such as stocks, cryptocurrencies, and real estate, adding flexibility to wealthy families’ portfolios. “People hold gold because they know they can always liquidate it on a rainy day,” said Patrick Tuohy, executive director at Goldstrom.
The gold market’s appeal is bolstered by a weakening US dollar amid ballooning US debt and expectations of Federal Reserve interest rate cuts, which typically enhance gold’s allure as a safe haven. Deutsche Bank forecasts bullion prices averaging $3,700 an ounce in 2026, while Goldman Sachs predicts a rally up to $4,000.
Hong Kong’s status as Asia’s bullion hub is further reinforced by China’s launch of its first offshore gold vault in the city, streamlining global settlement and cementing its strategic role. However, compliance challenges remain, with only a fraction of Hong Kong’s refineries accredited by the London Bullion Market Association, which ensures responsible sourcing.
Concerns about supply chain integrity arise from regions like Kenya, cited by NGOs as potential transit points for smuggled gold from conflict zones. Cavendish works with trusted traders like Ramco Ltd. to maintain compliance with Hong Kong law and source gold responsibly.
While trading unrefined gold can yield substantial profits, it demands deep market knowledge and reliable connections. “When you absolutely know what you’re doing, it’s mechanical and very lucrative,” Tuohy said, warning that inexperience can lead to costly mistakes.
Some analysts expect the gold market to cool within a year as geopolitical tensions ease following the 2026 US midterm elections, potentially tempering demand. Nonetheless, for now, the sector remains highly profitable. Cavendish reportedly earns 5% to 10% premiums on each shipment cycle, capitalizing on strong market appetite and efficient logistics.
“Given the premiums people are willing to pay for gold, it’s going to attract more people and bigger players,” said Quentin Mai, CEO of West Point Gold.
