Safe havens

  • 21 November 2019
  • 1 minute

During times of stock market turmoil or economic uncertainty, investors often move their money into investments that they consider to carry less risk of loss. These are sometimes called ‘haven’ assets.

Gold has long been a perceived haven despite the fact that, unlike bonds, shares or cash, there is no reward for holding it. This is because there is a common perception that gold holds its value in the face of inflation and is unlikely to ever become worthless. It has been used as a store of economic value in this way for thousands of years.

Other haven assets include cash deposits (as investors can be rewarded with interest payments) and government bonds. US government bonds are particularly regarded as being a low risk. They are issued by the government of the biggest economy in the world and the US has never missed an interest payment on bonds it has issued.

In currency markets, the Swiss franc is favoured when investors are nervous. This is due to the historically dependable long-term performance of the Swiss economy.

Important information

Any views expressed are our in-house views as at the time of publishing.

This content may not be used, copied, quoted, circulated or otherwise disclosed (in whole or in part) without our prior written consent.

Fees and charges apply

Let's start with a free consultation

No fees. No commitment. No obligation to buy. Let's just see how we can help

Tap into some of the finest minds in the business

Our regular newsletters are packed with food for thought. Sign up for expert views and opinions, and choose which areas of financial planning and investment you’d like to hear about.

This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply.

Selected articles