Hong Kong Billionaire Lifts Gold Allocation to a Quarter of Family Office Assets

A Hong Kong billionaire has sharply increased his gold allocation, highlighting a shift in family office portfolio construction amid rising geopolitical risks.

Value investing veteran Cheah Cheng Hye has lifted gold exposure to about a quarter of assets at his USD1.4bn family office, up from roughly 15% a year ago, according to people familiar with the matter.

Cheah said he mainly buys and holds physical gold and highly liquid vehicles, avoids derivatives and borrowing, and favours a portfolio mix of 60% equities, 20% bonds and 20% gold-led metals.

Industry data show family offices averaged about 2% exposure to gold and precious metals in 2024.

Cheah cited geopolitical tensions, sanctions risks and what he described as a global “vault flight”, adding his gold is stored in a Hong Kong government warehouse.

Gold and silver have hit record highs amid trade tensions and expectations of easier US monetary policy.