Gold and silver have emerged as first-time investors’ preferred asset class, overtaking equities and unit trust funds, according to observations by Oversea-Chinese Banking Corporation (OCBC).
On Feb 19, the bank announced that two in three of its retail customers in 2025 chose the two precious metals to begin their investment journey with the bank. During the year, OCBC’s customers that invested in precious metals grew 2.5 times y-o-y, reflecting heightened demand for gold and silver paper bullion.
OCBC also noted growing interest from younger investors in an asset class that was once associated with older investors seeking stability.
In 2025, the bank recorded a doubling of investors aged 40 years and below buying gold and silver. This age group accounted for half of all investors. Investors in their 20s also posted the fastest growth in the holdings of both metals, as prices reached new highs.
According to the bank, precious metals provide an accessible way for many first-time investors to begin building wealth, while serving as a hedge amid geopolitical uncertainty, inflation worries and shifting expectations around global interest rates. This accessibility was further supported by fractionalisation, which enhances affordability.
“Precious metals, especially gold, continue to be supported by solid structural factors, and will remain important as a source of diversification in portfolios,” says Tan Siew Lee, OCBC’s head of group wealth management.
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“Typically, once an asset becomes mainstream, hype can often creep in. The recent volatility is a reminder that sharp price swings can happen. Young investors may feel tempted to chase quick gains, but true investing is about building long-term wealth, not speculation,” she adds.
Despite the asset class’s reputation for stability, Tan notes that allocations for precious metals should remain “measured”.
“Gold should sit alongside a well-balanced investment mix, in line with one’s risk tolerance and preferences. Those with little or no exposure may consider building positions gradually — taking advantage of dips and staying focused to their long-term goals rather than reacting to short-term market noise,” she continues.
Looking ahead, the bank says it sees continued growth in its precious metals business through 2026 thanks to resilient demand, underlying structural drivers behind the recent rally, as well as sustained industrial demand. Even with higher prices, OCBC reported that the number of new investors continued to rise, tripling month-on-month as at end-January 2026.
