Citigroup: Inflation Surpasses Tariffs as the Top Concern for Family Offices, Wealthy Individuals Flocking to Gold and U.S. Stocks

The world’s wealthiest investors are now citing inflation as their top risk. According to Citigroup’s latest survey, inflation has replaced trade wars and tariffs this year, emerging as the biggest concern for family offices; this trend is profoundly shaping asset allocation strategies among ultra-high-net-worth individuals.

Citi’s annual global family office report reveals that interest rate changes and the stability of the global financial system follow closely behind inflation as the key issues most concerning respondents.

When selecting major asset classes, publicly traded equities were identified as the preferred category for future net additions. Over 90% of surveyed family offices reported positive portfolio returns this year, and nearly half said they increased allocations to listed stocks in the first half of the year.

Gold’s appeal has also surged markedly—Citi’s Head of Wealth Andy Sieg noted that gold now features in virtually every client conversation he has, a sharp contrast from the situation two years ago.

Citi has recently joined the ranks of London’s gold market vault and settlement providers to meet the growing physical gold demand from wealthy clients.

The survey was conducted between June and July this year, covering 350 family offices in over 40 countries.

Inflation has overtaken trade wars and tariffs to become the top concern for family offices this year, highlighting the tangible impact that rising living and operating costs have on this group.

“People might think, with that much wealth, why would they care?”, Andy Sieg commented in an interview:

“The very reason these families are so successful is because they are equally prudent about costs and returns. As some aspects of their lifestyle become more expensive, their sensitivity to these shifts is acute.”

According to Bloomberg Economics, inflation rates remain above 3% in three of the world’s four largest economies, keeping interest rates elevated and dragging down economic growth. In this macro environment, both interest rate trends and the stability of the financial system have become core concerns for family offices, reflecting widespread market anxiety about structural economic pressures.

Despite their growing concerns, more than 90% of surveyed family offices still achieved positive returns, with nearly half increasing their exposure to listed equities in the first half of this year.

Dawn Nordberg, Citi’s Global Head of Client Solutions and Family Office, said: “We’re seeing clients allocate more funds to public equities because, when it comes to seeking growth, stability, and flexibility, US listed companies are irreplaceable.”

Andy Sieg added that publicly listed equities are the top choice for future net additions, not only due to their robust recent performance but also because of valuation concerns in the private markets—especially for assets subject to regulatory actions or other uncertainties beyond investors’ control, which are now less attractive.

Inflation concerns are also driving wealthy families to re-evaluate gold’s strategic value. Andy Sieg said gold is now mentioned in almost every client interaction, a sea change from just two years ago. He stated:

“Previously, global wealthy families focused their conversations on currencies; now they realize many developed economies face similar challenges—strained fiscal positions, persistent inflation. Perhaps the true ‘hard currency’ today is gold.”

In response to this demand, Citi is expanding its gold vault services, having recently joined a select group of banks involved in London’s gold vault custody and clearing operations to serve the growing appetite for gold allocation among wealthy clients.