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Wealthy Investors Shift from Dollar to Alternative Assets

Global asset management firm UBS has reported a significant shift in investment preferences among their high-net-worth clients. Many are moving away from the U.S. dollar and dollar-linked assets in favor of alternative investments such as gold and cryptocurrencies.

Rising Interest in Gold and Cryptocurrencies

Amy Lo, co-head of UBS Group’s Asian Wealth Management division, noted that wealthy investors are increasingly attracted to alternative assets amidst economic volatility. Speaking at the Bloomberg New Voices event in Hong Kong on May 13, Lo highlighted the growing popularity of gold and cryptocurrencies as “safe-haven” options during turbulent times.

“Gold is very popular now,” Lo stated during her interview.

Investors are shying away from traditional dollar-backed assets, including bonds and treasuries, due to the uncertainty caused by trade tensions. Instead, they are diversifying their portfolios to include assets less affected by geopolitical and economic fluctuations.

Diversification Beyond U.S.-Centric Investments

Lo emphasized that UBS clients are transitioning from portfolios heavily centered around U.S. investments to more diversified asset allocations. This shift includes investments in the Chinese yuan and yuan-backed assets, which are increasingly seen as a viable alternative to the dollar.

Recent data shows the Chinese yuan has been outperforming the U.S. dollar. In May 2025, the yuan reached a six-month high of 7.2169 per dollar on May 6 and strengthened further to approximately 7.201 per dollar by May 13. During the same period, the U.S. Dollar Index fell from 101.79 to around 100.63, reflecting a notable decline.

Bitcoin and Gold: Leading the Alternative Asset Surge

The shift toward alternative assets is further underscored by the performance of Bitcoin and gold. Bitcoin recently surpassed the $105,000 mark following a temporary pause in trade tariffs between the U.S. and China. This agreement eased trade tensions and created positive momentum in cryptocurrency markets.

Meanwhile, gold has also been on the rise, reaching a new all-time high of $3,390 in April 2025. The surge in gold prices is largely attributed to ongoing geopolitical tensions, reinforcing its status as a reliable store of value during uncertain times.

Key Takeaways for Investors

For those looking to navigate the volatile investment landscape, here are some tips:

  • Diversify your portfolio: Include a mix of traditional and alternative assets like gold, cryptocurrencies, and yuan-backed investments.
  • Monitor geopolitical events: Trade agreements, tariffs, and political developments can significantly impact asset performance.
  • Invest in safe-haven assets: Gold and Bitcoin are increasingly seen as reliable options during periods of uncertainty.
  • Stay informed: Keep track of market trends and data to make informed decisions.

This growing trend among wealthy investors highlights the importance of adapting investment strategies to align with global economic shifts. Whether you’re new to investing or at an intermediate level, exploring alternative assets can provide valuable diversification and stability in your portfolio.

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