Wealthy Investors Turn to Physical Bullion, Straining Vault Capacities
The desire to operate independently of the financial system and seek crisis security has driven investors toward physical gold bullion stored in private vaults instead of gold funds.
The world's wealthiest individuals, alongside Turkish investors, have turned to purchasing direct physical gold bullion instead of funds. In the face of surging record demand, private vault companies are embarking on new investments to increase their capacities.
Major Shift in Physical Gold Demand
In the gold market, alongside prices, a striking shift is also taking place in investor preferences. The world's wealthiest investors are turning directly to buying physical gold bullion instead of gold funds and similar financial products.
The surging demand has also begun to strain the capacities of private vault companies that have stored large quantities of precious metals for years.
Vault Companies' Capacity Expansion Plans
The increase in demand for physical gold has driven certain private vault companies toward new investments.
London-based Sharps Pixley is searching for a new facility, while Switzerland-based Swiss Gold Safe is preparing to expand capacity across six different vault locations.
New Facilities Dedicated to Large Clients
MKS PAMP also plans to establish a new and large vault facility tailored for ultra-wealthy clients holding bullion valued at least 50 million dollars.
This situation clearly demonstrates the speed at which massive capital in the market is transitioning into physical assets.
Reasons for the Acceleration of Demand
According to vault companies, demand for physical gold has accelerated particularly over the past 12-18 months.
Behind the investors' interest in keeping their gold in individual vaults rather than shared pools lies a desire to reduce dependence on the financial system and a quest for security against potential crises.
Global Research and Council Data
Research by banks such as HSBC, UBS, and Bank of Singapore has also revealed that wealthy investors are increasing their gold investments.
According to World Gold Council data, global bullion and gold coin investments increased by 21 percent in the first half of 2026, reaching 784 tons.
Record Demand in the Turkish Market
A similar trend to the one seen globally is also visible in Turkey, where investment-related demands are climbing rapidly.
Demand for investment-purpose bullion and coin gold in Turkey rose by 29 percent year-on-year in the first quarter of 2026, reaching 26.1 tons and hitting the highest level of the last 7 quarters.
Spending Record by Turkish Investors
The spending by Turkish investors on bullion and coin gold in the first three months of the year reached a record level of 4.5 billion dollars.
These data prove that confidence in physical gold has reached its peak on both a local and global scale.