Cheah Cheng Hye, a leading figure in Asian value investing often referred to as "Hong Kong's Buffett," has allocated a quarter of his personal wealth to gold, a proportion that far exceeds that of his peers, and he adheres to a strict "buy only, no selling" strategy.
The 71-year-old founder of VALUE PARTNERS manages approximately $1.4 billion in family office assets, with precious metals accounting for about 25% of the portfolio. In contrast, the 2025 UBS Global Family Office Report indicates that the average allocation to gold and precious metals is a mere 2%.
According to a Bloomberg report on the 19th, informed sources revealed that Cheah began making small investments in precious metals in 2008 and started purchasing physical gold ETFs in large quantities a decade later. These investments have generated cumulative gains of $251.1 million, representing a 167% increase. In an interview, Cheah stated that he views precious metals as part of his life savings, does not trade them, avoids using derivatives or structured products, and never borrows money to invest.
Cheah advises investors to construct a portfolio of "60% stocks, 20% bonds, and 20% precious metals (primarily gold)." He believes that geopolitical tensions—including conflicts in Venezuela and Ukraine, along with other geopolitical risks—are creating increasingly strong support for gold and silver.
Entering 2026, metals including gold, silver, copper, and tin have all hit record highs, driven by anticipated loose monetary policy from the Federal Reserve, political pressure from the Trump administration, and ongoing geopolitical tensions. Cheah stated that the global situation has fully validated his bets.
From Value Investing to Precious Metals Allocation
Cheah, a Malaysian former financial journalist, co-founded VALUE PARTNERS in 1993, which became Hong Kong's first listed asset management company. The firm reached its peak in 2017 with assets under management soaring to $17 billion. He currently serves as a board member of Hong Kong Exchanges and Clearing Limited and chairs its investment committee.
For three decades, Cheah has been a representative figure for value investing in Asia, building VALUE PARTNERS into a stock-picking giant managing billions of dollars in assets. Today, he has committed a significant portion of his personal wealth to gold and recommends others do the same.
According to informed sources, Cheah's precious metals investments began with small bets in 2008, escalating to large-scale purchases of physical gold ETFs a decade later. Beyond ETFs, he has also invested in gold mining stocks, physical gold bars, and gold coins. As of January 12, 2026, his precious metals holdings are concentrated in highly liquid physical instruments, including the Value Gold ETF (HK$1.297 billion), SPDR Gold Shares (HK$985 million), and iShares Silver Trust (HK$287 million).
Cheah's investment record is not without blemishes. During his final years at VALUE PARTNERS, assets under management declined sharply—hitting a low of $5.1 billion in 2024—and a 2017 transaction with HNA Group fell through. He ultimately stepped down as chairman after GF Securities invested in the company, a transition period reportedly marred by cultural clashes and executive friction.
Bullish on Silver and Precious Metals Outlook
The seed capital for Cheah's substantial gold purchases originated from a 2015 maneuver where he reduced his stake in VALUE PARTNERS just before a major market correction. After beginning gold purchases in 2008, and dissatisfied with Western vaults, he launched the Value Gold ETF in 2010, storing the physical gold at Hong Kong's airport. According to sources, he remains the fund's largest holder, with a stake valued at HK$1.3 billion ($167 million).
Cheah stated that following the freezing of Russian assets in 2022 and recent tensions involving Venezuela and Iran, the world is entering a period of large-scale "vault migration." Wealthy Asian families are increasingly moving funds back to the region to avoid U.S. sanctions or potential asset seizures. He believes a good method for storing this wealth is gold.
"If you have physical gold in a warehouse or a safe deposit box, nobody owes you anything," he said. His holdings are backed by gold stored in a government warehouse at Hong Kong's airport. "For Asian investors, buying physical gold is much better than paper gold."
Cheah is also bullish on silver, which has roughly tripled over the past year, far outpacing gold's gains. At the start of this year, metals including gold, silver, copper, and tin all reached record highs, propelled by expectations of Fed easing, political pressure from the Trump administration, and geopolitical tensions. Concurrently, some Asian family offices, such as Cavendish Investment Corp., are bypassing intermediaries to trade physical gold directly, allocating a significant portion of their portfolios to the metal.
Cheah expresses strong confidence in his precious metals investment strategy. "I am a very patient investor—I don't trade after buying precious metals, and I view them as part of my life savings," he said. "Eventually, this portion of the assets just gets bigger and bigger."
Comments