Record volatility in 2025 is prompting high net worth individuals to seek ways to protect their assets. How are billionaires stabilizing their fortunes, and which assets are they favoring?
How billionaires protect themselves from volatility
Persistent inflation, geopolitical tensions, and tariff crises have led to a particularly volatile year in 2025. Faced with this, both individual and institutional investors are searching for the Holy Grail: a combination of stable investments.
Billionaires are particularly on the lookout for stable stores of value, and in this game, gold remains the big winner. Demand for the yellow metal rose by 8% in 2025. According to Bloomberg, billionaires are currently buying gold directly on Asian markets, without going through wealth management companies.
Gold from artisanal mines in Kenya and elsewhere in Africa is shipped to Hong Kong, refined, and then sold at market prices to wealthy clients across Asia and to strategic Chinese buyers.
This is a way of limiting risk: by managing their own stocks, the ultra-rich avoid issues related to third-party fund management.
Stable real estate and alternative assets
Another way for the ultra-rich to protect their assets is through real estate, which is considered stable. Billionaires invest in luxury real estate located in cities considered stable, such as New York, London, and Geneva. For buyers, the benefits are manifold. This type of investment offers a tangible asset, potential for capital gains, and protection against inflation.
Beyond real estate, high net worth individuals also use alternative assets to diversify their holdings. The luxury art market continues to grow strongly (+6% in 2024, reaching $80 billion, according to the Art Basel Report). Other assets are also favored, such as classic cars and wine.
Their appeal lies in the fact that they are less correlated with traditional markets and therefore, in theory, more stable.The ultra-wealthy also make extensive use of derivatives to protect themselves against financial market volatility. Options and futures are therefore widely used to hedge portfolios and limit fluctuations.
Hedge funds also play a central role in this strategy. Private investment funds have developed a range of complex strategies (short selling, arbitrage, etc.) to manage their clients’ portfolios dynamically. This allows them to generate positive returns even when markets are down.
According to a recent report by Prequin, hedge funds raised more than $150 billion in 2025, a sign of their growing popularity among high net worth investors.
Special mention should also be made of cryptocurrencies: although these remain marginal, a fundamental trend is emerging.
This is particularly true since the advent of stablecoins, whose prices are based on other assets.
