Gold’s allure has long commanded the attention of the world’s richest and most powerful people who’ve used it to demonstrate and preserve their wealth. Millennia after its discovery, the precious metal is still in high demand across the globe, and you’re not alone if you’ve ever wondered: Do millionaires invest in gold?
The rich are known for diversifying their portfolios to reduce risk, focus on long-term performance and safeguard their wealth. Gold can be a key to the security, stability and preservation they seek. This article will reveal why and how millionaires invest in gold and the investment lessons you can take from their approach to money.
Why Millionaires Invest in Gold
If you’ve ever asked, Why do the rich invest in gold, you’ve begun to hone in on how differently high-net-worth individuals think about money than the average retail investor.
The wealthy choose gold because it checks a lot of boxes such as:
- Diversification
- A safe haven
- A tangible asset
- No counterparty risk
- Liquidity
For those of us with a more modest net worth, financial advisors often recommend precious metals to spread out risk in our portfolios and smooth out returns over time. Gold can safeguard against economic downturns and provide a sense of security because it’s something tangible you can hold on to. It doesn’t rely on anyone else to give it value, and it’s generally accepted around the world.
How Millionaires Invest in Gold
Do millionaires invest in gold? Absolutely.
Millionaires tend to focus on long-term growth, security and preserving wealth to pass down to future generations. Their main approach to investing in it is to buy bullion, which is physical gold. This approach is markedly more conservative than that of most retail investors, who may have a higher risk tolerance.
A UBS study in 2024 found that 71% of high-net-worth individuals prefer to avoid risk in investments. Millionaires insure and store their gold in highly secure facilities. This direct ownership is a critical part of safeguarding their wealth. It avoids counterparty risk.
Other investing strategies include buying exchange-traded funds (ETFs) that track gold prices, purchasing gold mining stocks and opening gold IRAs.
Diversification is a fundamental strategy to reduce risk and smooth out returns over time. A diversified investment portfolio — with stocks, bonds, real estate and commodities — can help keep any one asset or asset class from tanking your overall returns.
In their portfolios, millionaires often include gold among other physical assets, such as real estate, that are less susceptible to market volatility. Gold’s price behavior typically runs counter to that of equities and fiat currencies.
Most financial advisors recommend that gold makes up between 3% and 6% of your portfolio, but others put the upper end at 10% or 15%. During economic uncertainty, many suggest increasing the percentage of gold you hold to as much as 20%. How much you include depends on your financial situation, goals and risk tolerance.
How Much Gold Do the Rich Really Own?
Getting a firm accounting of gold held by the rich is nearly impossible, but the 10th annual Billionaire Ambitions Report from UBS for 2024 showed that 40% of billionaires surveyed planned to increase their gold holdings because of global economic instability, geopolitical risks and fears of market corrections.
How much gold do millionaires own? These figures can give you an idea. About 50% of the world’s mined gold (95,000 metric tons) is held by private individuals. This amounts to about $5 trillion in gold, a portfolio allocation of about 3.5%.
The World Gold Council in July 2025 reported that global demand for gold rose 3% year-over-year to 1,249 tons. It was the second quarter of demand growth, driven by increased inflows in gold-backed ETFs and investments in gold bars and coins.
Over-the-counter investments and stock exchanges added 170 tons in the second quarter, supported by institutional investment, with continued interest from high-net-worth investors.
Billionaire Ray Dalio, who founded the hedge fund Bridgewater Associates 50 years ago and has long been bullish on gold, invested $319 million in the precious metal this year before stepping away from his company in July.
Physical Gold vs. Gold ETFs: What Do Millionaires Prefer?
A majority of millionaires prefer to buy gold bullion — bars and coins — instead of paper financial products, such as gold ETFs. They like the security of physical gold during uncertain economic times, and they see other investment products as having no comparison to holding a tangible asset with intrinsic value and global recognition.
High-net-worth individuals don’t mind the cost of storage, insurance and a custodian for physical gold holdings. The comfort of knowing their wealth is being preserved outstrips concerns about maintenance costs cutting into returns.
Because they’re more conservative with investing than the typical retail investor, many high-net-worth investors want direct control of their gold because they value security over chasing returns.
A notable exception is Ray Dalio’s $319 million gold investment in the first quarter of 2025. Instead of bullion, he bought 1.1 million shares of SPDR Gold Shares (NYSEARCA: GLD), the world’s largest gold-backed ETF.
These types of funds are having a good year and are soaring in popularity because of liquidity, cost efficiency, accessibility and price transparency. But in the current challenging climate, the drumbeat is growing louder for investors to buy bullion.
What Everyday Investors Can Learn From the Wealthy
Consider taking on the mindset of a millionaire and putting a positive spin on the idiom “Follow the money.”
Explaining his first-quarter gold buy, Dalio voiced concerns about the U.S. dollar falling out of favor as the world’s currency. He also mentioned no one wanting to buy U.S. debt and the fact that other countries are facing their own debt problems. He said investors need to look for an alternative to money, suggesting that alternative might be gold.
In other words, the message is to invest in gold for its store of value and as a safe haven.
While gold investing by high-net-worth individuals might have been viewed as tactical before, the upswing in gold buying is a strategic move by many to use gold as a hedge against inflation, economic uncertainty and currency devaluation.
Consider opening a gold IRA, buying low-cost, gold-backed ETFs and responsibly adjusting your gold allocation based on your financial situation and investment goals.
Frequently Asked Questions
A
A large number of wealthy individuals buy and hold physical gold. While gold doesn’t generate any income by way of interest or dividends, it can buffer against the effects of an economic downturn, hedge against inflation and preserve buying power when currencies weaken.
A
Ultra-high-net-worth individuals surveyed hold about 2% of their investment portfolio in gold, far less than they keep in other assets, according to an annual wealth survey by real estate consultancy Knight Frank.
A
Gold prices are up 25% this year, and wealthy investors have increasingly turned to it to diversify holdings, spread out risks and preserve wealth. Financial advisors suggest keeping only 3% to 6% of your investments in gold or other precious metals for defense, focusing the majority of your portfolio on investments with greater potential to grow, such as stocks.
