In a lively Hubbis webinar held on May 29, 2025, industry experts explored the enduring appeal of gold as a key portfolio diversifier amid global uncertainties. Titled Gold 360° – Empowering Wealth Advisers to Guide HNW Clients, the discussion featured insights from Neil Broadbent, APAC iShares Equity Product Strategy at BlackRock, alongside other panelists, offering a multifaceted look at gold’s role in today’s volatile markets. From exchange-traded funds (ETFs) to physical bullion and tokenized assets, the conversation underscored why gold remains a compelling asset for high-net-worth (HNW) investors.
View this webinar On Demand: Gold 360° – Empowering Wealth Advisers to Guide HNW Clients
Gold has staged a remarkable rally, delivering a 27% return in 2025 and hitting 25 all-time highs by late May, following a robust 2024 with 40 record peaks. This surge, driven by financial demand and global uncertainties, has reignited interest in gold as a safe-haven asset. Broadbent highlighted the significant inflows into gold ETFs, noting that over 220 tons were added in Q1 2025 alone, with an additional 85 tons in the first two weeks of April following geopolitical events like Liberation Day tariffs. “It really is one of the few assets you can turn to for genuine diversification, especially with stock-bond correlations not holding up as they used to,” he said.
This shift reflects a broader trend: investors are seeking stability as traditional 60/40 portfolios face renewed pressure from rising bond yields and a weakening US dollar. Gold’s role as a hedge against policy uncertainty and currency devaluation has become increasingly relevant, particularly in light of recent US political developments.
ETFs: Liquidity and Simplicity
For investors seeking exposure to gold prices without the complexities of physical ownership, ETFs have emerged as a popular choice. Products like the iShares Gold Trust (IAU), which saw record inflows of over US$1 billion globally in both February and March 2025, offer cost-efficiency and ease of trading. “The relationship between ETF flows and the gold price, which had weakened in previous years, has strongly reasserted itself,” noted Broadbent, pointing to gold’s breakthrough above the $3,000 psychological barrier.
ETFs provide access to the London Bullion Market Association (LBMA) gold price with transparency and security. Gold in these funds is allocated, stored in secure vaults by reputable custodians like JPMorgan Chase, and subject to rigorous standards. “It’s in secure, segregated storage, separately identified from the custodian’s assets,” Broadbent explained, addressing concerns about counterparty risk. For retail and institutional investors alike, ETFs offer liquidity and low management fees — often just 18 basis points annually — making them a compelling option for those prioritizing convenience and cost.
Physical Gold vs. ETFs: A Question of Priorities
While ETFs dominate in terms of accessibility, physical gold remains a cornerstone for investors seeking direct ownership. The webinar highlighted the trade-offs: ETFs offer liquidity and low costs but involve counterparty risk, whereas physical gold provides tangible ownership at the expense of higher storage fees, typically around 0.5% per annum.
The Rise of Tokenized Gold
The discussion also touched on tokenized gold, a newer avenue for investors leveraging blockchain technology. By bringing physical gold onto the blockchain, tokenized assets enhance transparency and enable novel use cases, such as yield generation and collateral in decentralized finance (DeFi). These tokens, often tied to LBMA-accredited gold, offer flexibility with redemption options starting at 1 kilogram in markets like Singapore and Hong Kong, compared to higher minimums in Europe.
Supply and Demand: A Balanced Equation
Gold’s supply dynamics remain stable, with mine production growing at a modest 1.5-4% annually. Approximately 220,000 tons of gold exist above ground, with an estimated 55,000 tons of economically viable reserves underground. Despite higher prices, recycling has declined as investors hold onto gold in anticipation of further gains, and economic conditions have not forced widespread liquidation. This balance between supply and demand underpins gold’s long-term stability, with safe-haven demand offsetting weaker jewelry consumption during economic uncertainty.
Gold in Portfolios: A Strategic Necessity
The webinar’s key takeaway was clear: gold remains an important component of a balanced portfolio, particularly in turbulent times. Broadbent underscored its role as a diversifier, noting, “People are starting to associate ETFs with gold for the same reasons they think of ETFs for stocks and bonds — they’re cost-effective and easier to access.”
As global uncertainties persist, from US policy shifts to eroding confidence in fiat currencies, gold’s allure is undeniable. Whether through the simplicity of ETFs or the tangibility of physical bars, investors have multiple avenues to harness its value. The choice ultimately depends on individual priorities – liquidity, privacy, or innovation — but the case for gold as a strategic asset has never been stronger.
