The term “haven asset” also commonly used by small investors who simply want to secure their savings, indicates a certain type of material asset investment that maintains its value over time and thus, ensures protection in the event of inflation, disasters, political upheaval, and economic and financial crises of various kinds. More generally speaking, the haven asset can safeguard the investor in the event of instability.
Why are they called this and what are the most common haven assets?
First of all, you need to know that putting your savings in financial products can yield good results in terms of gains, however, you should also consider the possible risks and disadvantages. Money and securities are, in fact, forms of intangible wealth type and as such, subject to common risks, such as inflation, danger of default by the State, bank and business failures, etc.
If, however, you want to diversify your investment and, above all, secure your capital, you should consider a haven asset, which allows you to avoid all of the above-mentioned risks.
So, what exactly are haven assets? And what are the differences between one and the other?
Let’s take a detailed look at the types and characteristics of each type of asset.
Gold, therefore, is the only truly accessible haven asset, thanks to its long-term stability and its universally recognised and shared value. It is no coincidence that gold has long been an official reference of national currencies.
But there is more, because if normal coins can be issued in larger quantities (they can theoretically be issued ad infinitum), gold will continue, on the other hand, to increase in value compared to currency itself.
In short, investing in gold is a safe haven asset good refuge by definition, it withstands periods of crisis, fluctuation and inflation, and is, thus, considered a genuine physical insurance (as well as the only one) against default or devaluation.
Cross | Bid | Time |
---|---|---|
EUR/USD | 1,06280 | 25/09/2023 14:23:19 |
EUR/GBP | 0,86960 | 25/09/2023 14:23:19 |
EUR/CHF | 0,96780 | 25/09/2023 14:23:19 |