International asset administration agency UBS discovered that their excessive internet value clients have chosen to abandon the greenback in addition to its linked assets in favor of investing in additional various assets resembling gold and crypto.
In accordance to a report by Chinese language media Cailian Information, co-head of UBS Group’s Asian Wealth Administration, Amy Lo, mentioned that extra rich traders are leaning extra in the direction of various assets in addition to Chinese assets than ever earlier than.
Lo mentioned that various assets resembling gold and cryptocurrencies have turn out to be extremely popular just lately in mild of the financial volatility triggered by Trump’s blanket commerce tariffs.
“Gold may be very well-liked now,” mentioned Lo in an interview with Yvonne Man on the Bloomberg New Voices occasion held in Hong Kong on Could 13.
In accordance to Lo, UBS traders have begun to abandon the U.S. greenback, bonds, treasuries and different dollar-backed assets due to the financial uncertainty. As a substitute, they’ve began looking for extra various “safe-haven” assets that are much less affected by the commerce tensions.
She mentioned that traders have began to diversify their assets, altering their portfolios from what was initially a “fairly US-centric” array of funding instruments. Moreover, Lo additionally famous traders have additionally come to spend money on the Chinese language yuan and different yuan-backed assets to keep away from the greenback’s dominance.
Current information signifies that the Chinese language yuan has been outperforming the U.S. greenback in early to mid‑Could 2025.
In accordance to Reuters, the yuan reached a six‑month excessive of seven.2169 per greenback on Could 6, and by Could 13 had firmed additional to about 7.201 per greenback. Throughout the identical interval, the U.S. Greenback Index slipped from its current peak close to 101.79 to round 100.63 by Could 14, reflecting a 0.37% drop on the day.
Then again, Bitcoin (BTC) just lately crossed over the $105,000 threshold after the U.S. and China agreed on a 90-day pause on excessive commerce tariffs, lowering them drastically. In the meantime, gold hit a brand new all-time excessive at $3,390 final April amidst geopolitical tensions.
