Gold, commodities and real assets in family office portfolios

Gold and other real assets are a small but growing part of family office portfolios, and real estate, the largest real asset, is being reduced. UBS's Global Family Office Report 2026 puts gold and precious metals at 2% of the average portfolio at the end of 2025 with 3% planned for 2026, commodities at 1%, infrastructure at 1% rising to 2%, and real estate falling from 11% to 8%. J.P. Morgan's 2026 report found 28% of offices holding gold with an average weight of 0.9%, against the bank's own suggestion of 3% to 5%. The backdrop is a gold price that, according to the World Gold Council, averaged $3,431 an ounce in 2025, up 44% on the year, and $4,506 in the second quarter of 2026.

Allocation data across surveys

Sources: as linked; the Asia-Pacific figures are from Campden Wealth's 2025 report. UBS's 2025 release found 19% of offices using precious metals as a diversifier and 21% expecting to increase them over five years; its 2024 release had 34% of Swiss offices using precious metals for diversification, the highest of any region.

The gold price in 2025 and 2026

The World Gold Council's full year 2025 data record 53 new all time highs for the LBMA PM price during the year, an annual average of $3,431 an ounce (up 44%) and a fourth quarter average of $4,135 (up 55% year on year). Total demand exceeded 5,000 tonnes for the first time, central banks bought 863 tonnes and gold backed ETFs added 801 tonnes, the second strongest year on record for ETF holdings. The council's second quarter 2026 report shows the rally pausing: the price averaged $4,873 in the first quarter of 2026, then $4,506 in the second quarter, 8% below the first quarter record but 37% above a year earlier. ETFs saw 45 tonnes of outflows in the quarter while central banks bought 289 tonnes, up 62% year on year, and 45% of surveyed central banks intend to add to reserves over the next 12 months.

For family offices the arithmetic of the move matters. An office that held 2% in gold at the start of 2025 and did nothing would have seen that position grow substantially relative to a portfolio returning a single digit figure, so part of the rise in reported weights is drift rather than purchase. UBS's 2026 finding that 65% of offices expect confidence in the US dollar's reserve status to weaken supplies a stated reason for holding the position rather than trimming it.

Real estate: the one real asset being cut

Real estate is the largest real asset in every survey and the one offices plan to reduce. UBS's 2026 respondents plan to take it from 11% to 8%, the largest planned cut of any asset class, continuing a trend visible in J.P. Morgan's 2026 report, which notes real estate fell from 2024 as money shifted to public equities. The weight varies widely by region: Citi's 2025 report shows 18% in North America, 13% in EMEA and 9% in Asia Pacific, and UBS's 2025 data had US offices at 18% and Latin American offices at 6%. Real estate is also where family offices are most likely to hold assets directly, with Citi showing 12% direct against 2% in funds, which makes the planned reduction slow to execute. The choice between owning buildings and owning funds is examined in direct real estate versus funds.

Infrastructure and commodities

Infrastructure is small and rising. UBS's 2026 report shows it moving from 1% to a planned 2%, and 37% of offices name it as an investment theme. BlackRock's 2025 survey found 30% of offices planning to increase infrastructure and 75% positive on the asset class, with planned increases concentrated in opportunistic (54%) and value add (51%) strategies. J.P. Morgan found only 21% of its respondents with any exposure, averaging 0.7%. Commodities other than gold are a 1% to 2% holding in every survey and no survey shows a planned increase. Goldman's 2025 survey found 11% of offices using crypto for tail risk management, and UBS found 24% holding digital assets, typically at around 1%, so part of the role once played by gold and commodities is being shared with a newer asset.

Real assets in family office portfolios are being rebalanced rather than expanded: less real estate, slightly more gold and infrastructure, and a steady 1% in commodities. The gold weight has risen mostly because the price has, and the 2026 plan to reach 3% would still leave most offices below the levels their own banks suggest. The full picture sits in family office asset allocation in 2026, and the defensive role shared with bonds in cash and fixed income for family offices.