Steve Rand
General Manager / Sr. Precious Metals Advisor
Steve Rand is the General Manager and a Sr. Precious Metals Advisor at Scottsdale Bullion & Coin. He brings over 20 years of experience in the physical precious metals markets.
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Although gold’s recent price correction lasted much of the first half of 2026, demand hasn’t experienced the same slump. In fact, buying has remained so strong, especially among wealthy investors, that private storage vaults are struggling to keep up.
This is an unusual development for a corner of the market that rarely runs out of room, with many vaults operating without space shortages for generations.
This capacity constraint reflects the growing prioritization of physical gold among high-income investors. However, this is only a single wave in a rising tide of demand across the board.
The Shift to Physical Gold Strains Storage Space
Recently, the Financial Times released a concerning report on storage limitations from big-name vaults. Reporters tied these limitations to a broader shift from paper gold exposure to physical bullion among wealthy investors.
- London-based Sharps Pixley is already scouting for a new facility to ease storage constraints, with its United Kingdom lead citing heightened interest in physical bullion.
- Switzerland’s Swiss Gold Safe already runs six separate vault locations and, according to the COO Ludwig Karl, “Every single one of them we have to expand right now.”
- MKS Pamp plans to build a “substantial” vault for its wealthiest clients, with a special “white glove” service reserved for those holding a minimum of $50 million in bullion.
This development, which has picked up steam in the last 12 to 18 months, is only partially about a desire to own more of the metal. It also demonstrates an investment shift among the wealthiest investors toward direct ownership.
Why Are Wealthy Investors Moving to Physical Gold?
Vault providers say clients increasingly want bullion that is “allocated and segregated,” meaning specific bars are assigned to individual owners rather than held in a general pool.
A reduction in counterparty risk is another motivating factor. MKS Pamp notes many clients view physical gold stored outside the banking system as a financial safety net. This comes as many people wonder if their wealth is too dependent on digital systems.
As Scottsdale Bullion & Coin’s Precious Metals Advisor Todd Graf explains, “Physical gold in your possession is the original decentralization.”
The Numbers Confirm the Trend
The vaulting boom is further evidenced by demand growth in the upper echelons of the economy.
- HSBC’s Global Affluent Investor Snapshot, which surveyed 9,993 affluent and high-net-worth investors across 10 markets, found that 52% plan to increase their gold investments in 2026.
- UBS surveyed 307 investment offices representing families with an average net worth of $2.7 billion. Their average planned gold allocation rose from 2% in 2025 to 3% in 2026—a 50% proportional increase.
- Bank of Singapore reported that client physical gold holdings had increased more than 40% since the end of 2025, with the vast majority belonging to ultra-high-net-worth clients.
Physical Gold Demand Extends Far Beyond the Wealthy
Notably, this spike in gold buying isn’t limited to the wealthiest people. Investors of all backgrounds and income levels are increasingly adding gold to their portfolios.
According to the World Gold Council, global bar and coin investment reached 784 tonnes during the first half of 2026, up 21% year over year, marking one of the strongest first-half totals on record.
In the U.S. specifically, bar and coin demand rose 28% year over year in the second quarter, reinforcing that physical bullion demand extends well beyond private vaults and billionaire family offices. This broader shift is part of a larger move by gold to reclaim a central role in the global financial system.
How Much Gold Should You Hold?
With a broad-scale move toward physical metals, everyday investors are understandably looking for concrete figures when it comes to portfolio allocation. In the past, the 60/40 portfolio split, which left little room for gold, was considered a well-diversified portfolio.
Nowadays, more analysts recommend a 60/20/20 ratio, with a heavier allotment to physical gold. In reality, there’s no “perfect” allocation. The appropriate figure depends on your goals, risk tolerance, time horizon, and existing investments.
To give investors a taste of what the market says, we pulled together allocation advice from more than two dozen financial institutions, major investors, and precious metals experts.
Check out How Much Gold Should Be in Your Portfolio? Expert Guidelines for Precious Metals Allocation. If vault capacity is part of your own calculus, a Gold IRA offers professionally managed, segregated storage while preserving retirement tax advantages — see why investors are choosing gold IRAs for retirement. You can also get in touch with a Precious Metals Advisor for personalized advice by calling toll-free at 1-888-812-9892 or using our live chat function.