UBS: Wealthy Clients Shift Away from US Dollar Toward Gold, Cryptocurrency and Yuan-Linked Assets

UBS reports a noticeable change in the behavior of high-net-worth clients: many are reducing exposure to US dollar–based investments and reallocating capital into alternative assets such as gold, cryptocurrencies and assets tied to the Chinese yuan. According to Amy Lo, co-head of UBS Group’s Asian Wealth Management, gold has become especially attractive amid heightened economic volatility tied in part to trade policy and tariff measures.

What UBS Is Observing

The bank’s insights indicate that wealthy investors are increasingly treating traditional dollar-denominated instruments as less central to their portfolios. Instead, they are exploring a broader set of options to preserve purchasing power and diversify risk. Amy Lo singled out gold as a preferred safe-haven asset at times of uncertainty, while cryptocurrencies have captured attention for their strong price momentum and potential diversification benefits.

UBS also highlights growing interest in Chinese yuan–backed assets. Recent data referenced by the firm shows the yuan outperforming the dollar in May 2025. In capital markets, this shift has coincided with sharp moves in specific instruments: Bitcoin reportedly crossed the $105,000 mark and gold reached an all-time high of $3,390 in April, underscoring investor appetite for non-dollar stores of value.

Why Wealthy Investors Are Rebalancing

Several factors help explain the trend away from dollar-centric allocations. Economic and political uncertainty—such as trade tensions, tariff announcements and shifting monetary policies—can reduce confidence in a single-currency strategy. Rising inflation expectations and concerns about real returns on cash and fixed-income instruments have prompted investors to seek assets perceived as inflation hedges or stores of value.

Additionally, the growth and maturation of digital asset markets have given wealthy clients new avenues for portfolio diversification. Cryptocurrencies, while volatile, are seen by some investors as a distinct asset class with low correlation to traditional equities and bonds. Meanwhile, bullion continues to play a conventional role as a hedge during periods of market stress.

Implications for Wealth Management

This shift carries several implications for wealth managers and financial advisers. Portfolio construction is evolving to incorporate a wider range of asset types, currencies and geographies. Managers must weigh liquidity needs, regulatory considerations and the risk-return profiles of alternative holdings when advising clients. The growing interest in yuan-linked assets also requires familiarity with China’s financial system, capital controls and local market dynamics.

For advisers, the trend reinforces the importance of personalized risk assessment and clear communication about the trade-offs involved in moving away from dollar-based investments. Diversification strategies that include a mix of precious metals, digital assets, and non-dollar currency exposure may better align with some clients’ goals, but they also introduce different types of volatility and operational considerations.

Practical Considerations for Investors

Investors exploring these alternatives should consider several practical points. Gold and other precious metals offer a historically recognized hedge but vary in liquidity and storage costs. Cryptocurrencies provide potential upside and diversification, but their markets can be highly volatile and subject to regulatory shifts. Yuan-denominated instruments may offer currency diversification, yet investors should understand the implications of currency controls and local market rules.

Ultimately, the UBS findings reflect a broader reassessment of traditional allocation frameworks among wealthy clients. As global financial conditions evolve, investor preferences are shifting toward a more diversified set of tools to manage uncertainty, preserve capital and pursue long-term objectives.

UBS’s observations underscore the need for careful, tailored portfolio design that balances opportunity and risk when incorporating gold, cryptocurrencies and non-dollar currency exposures into wealth strategies.