Bloomberg reported, citing sources familiar with the matter, that Value Partners Group (00806.HK) founder Cheah Cheng Hye has allocated approximately one-quarter of his assets to gold through his family office, which manages his personal assets totaling USD 1.4 billion—a 10-percentage-point increase from a year ago.
In an interview with Bloomberg, Cheah Cheng Hye recommended that investors adopt a "60-20-20" portfolio allocation: 60% equities, 20% bonds, and 20% precious metals, primarily gold. He also expressed optimism about silver, noting that its price had risen approximately threefold over the past year, significantly outpacing gold's performance.
Cheah Cheng Hye further highlighted that the world is entering a period of large-scale "capital outflows." Wealthy Asian families are repatriating funds to the region to avoid U.S. sanctions or potential asset freezes, with gold being an excellent store of wealth. For Asian investors, physical gold is preferable to paper gold. Cheah Cheng Hye’s gold reserves are backed by physical gold stored in a government warehouse at Hong Kong International Airport.
The report cited sources indicating that Cheah Cheng Hye made small bets on precious metals in 2008 but accelerated his investments a decade later by purchasing significant amounts of physically-backed gold exchange-traded funds (ETFs), accumulating gains of USD 251 million with a total return of 167%. He also invested in gold mining stocks, physical gold bars, and coins.
