Rising inflation has become the main risk for wealthy investors. Where do they keep their money?

Rising inflation has become the top risk for family offices worldwide, surpassing trade wars and higher import tariffs. This is according to Citigroup’s annual global report, as reported by Bloomberg. The survey was conducted in June and July, with 350 family offices from more than 40 countries participating.

Rising prices are worrying even the wealthiest investors, noted Andy Sig, head of Citigroup’s capital management division. “These are very successful people and families, so you might think: they have so much money—why should they worry? But these families have achieved success precisely because they pay close attention to both their expenses and their income. They’re very attuned to when certain aspects of their lifestyle start to become more expensive,” he explained.

According to family offices, inflation is followed on the list of major threats by changes in interest rates and instability in the global financial system. This points to growing concern about the structural resilience of the economy amid pressure from several fronts—ranging from rising prices to military conflicts, the agency notes.

According to Bloomberg Economics, inflation exceeds 3% annually in three of the world’s four largest economies, which is keeping interest rates high and slowing economic growth.

More than 90% of the family offices surveyed reported that their investment portfolios had generated positive returns this year. Nearly half increased their allocation to publicly traded stocks in the first half of the year. Public equities were also cited as the preferred asset class for future investments, Sig said. According to him, this trend reflects both the recent steady growth of stocks and concerns about asset valuations in private markets—which are particularly vulnerable to regulatory actions or other factors beyond investors’ control.

Concerns about inflation are also fueling interest in gold. According to Sig, almost every conversation with Citigroup clients now revolves around this metal, although that wasn’t the case just two years ago.

“Families around the world who in previous years would have been discussing currency pairs now realize that many developed countries are in a similar situation—facing difficult fiscal conditions and rising inflation. Perhaps gold is becoming the currency of the moment,” he said.

This article was AI-translated and verified by a human editor