Gold as a safe haven asset

Why gold is the best safe haven asset there is

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.

  1. Gold, undoubtedly, occupies the top spot in the ranking of haven assets par excellence, as do silver and platinum, because they are small and easy to transport and so, are considered to be the universal official reference values, in any country in the world, irrespective of the currency adopted or the local politics. Moreover, these metals do not change over time and thus, maintain their value intact;
  2. In second spot, among haven assets par excellence, we find real estate investment (property or land), which, however, calls for significant disposable income, given the prices of homes and land in Italy;
  3. In the third spot, we find diamonds and other precious stones, which obviously represent a valid alternative to those listed above. However, in addition to the ethical factor (the poorest populations are exploited in diamond mining), you also require technical skills and here again, the economic commitment is somewhat high;
  4. Paintings, works of art and collectors’ items are valid alternatives from the point of view of safe investment because all these assets tend to increase in value in time. However, technical expertise is again required to recognise and correctly evaluate these objects because there are many risks in this market.

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
WOULD YOU LIKE MORE INFORMATION?
Contact us by filling out the form at the side, our consultants are at your disposal and will be pleased to help you. Without obligation and totally free. Enter your details and we will contact you quickly. Or go to the FAQ section to find answers for selling, buying and investing in gold.
Pero
Via Pitagora, 11 - 20016, Pero (MI) ITALY
MM1 - Molino Dorino underground station
Tel: +39 02-8853
We receive by appointment only, from Monday to Friday from 09.00 to 16.00. We are closed on Saturdays and Sundays.
Click HERE to book
Milan
Via Mazzini, 16 - 20123, Milan ITALY
MM1 - MM3 undergound station Duomo
Tel: +39 02-8853
We receive customers in the historic office and in the new shop, by appointment only, from Monday to Friday and from 09.00 to 16.00.
We are closed on Saturdays and Sundays.
Click HERE to book
I consent to the processing of my personal data pursuant to art. 13 of Regulation EU 679/2016 ex art. 13 D.Lgs 196/03
Acconsento di ricevere la newsletter in ambito delle iniziative di marketing profilato correlate ai servizi offerti da Orovilla. Non ti invieremo mai spam e potrai toglierti in qualsiasi momento!