What is an asset haven?

The definition of safe-haven assets are those values ‚Äč‚Äčthat in times of uncertainty or crisis have a high probability of maintaining their benefits and even increasing them.

Although safe havens are not the perfect investment, they can be a good option for long-term investors, especially because of their stability and growth over time. That they are considered 'safe' does not imply that their value may fall. In times of great turbulence in the markets they will perform better than other asset classes.

Among the best known safe havens are precious metals such as gold, currencies such as the dollar and the Swiss franc, in addition to the public debt of Germany, the United States or Switzerland, which are counted by the agencies of rating, with the highest rating.

It is also usually considered as safe havens those that have experienced growth while the majority declines.

What are safe haven investments?

If we look at the moments of uncertainty in markets We will obtain solutions around the best refuge assets:

  • Gold: it is a great safe haven investment, especially in the long term, since it is a way to leave part of the capital achieving a return little by little, and with a minimum risk of loss.
  • Bonds in Germany and the United States: the exit of the United Kingdom from the EU will also mean that the Federal Reserve of the United States will refrain from increasing interest rates. With long-term British, Japanese and German bond yields at lows, investors were tempted by higher returns on US bonds. In Europe, safe haven investment focused on German fixed income. Interest on the German 0,11-year bond grew to XNUMX% from its all-time low.

Why are cryptocurrencies interesting as safe havens?

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