Forex Zone - Forex Forum

What is Safe Haven?

Discussion started on Forex Education

  • Hero Member
  • Posts: 9575
  • Points: 59
  • Likes Received: 725
  • Reputation: +10/-20
Safe haven is an investment asset that has a low level of risk, when the global economy is uncertain or there is geopolitical turmoil. The problem is, a type of safe haven investment is a safe haven, so that this type of investment is no longer safe haven. That is, safe haven assets are assets that are used as an escape when global economic conditions are considered unsafe. So, under certain conditions, safe haven assets may no longer be safe haven assets when conditions are considered safe. Examples of Safe Haven Assets There are several types of safe haven assets today, including US government bonds, gold, silver, land and property. The thing you need to know is to decide when you will get into these assets.

The currencies that are often used as safe haven assets are the Japanese Yen and the Swiss Franc. However, there are also some investors who position the US Dollar as a safe haven. Historically, the US Dollar is expected to be stable and maintain its purchasing power as other currencies decline. Since the Bretton Woods Agreement during World War II - which created the fix exchange rate system - several countries have been forced to buy US Dollars as foreign exchange reserves. At that time, their commodities were denominated for foreign trade, so the value of the US Dollar soared and made it a safe haven. When there is political or economic turmoil, the US Dollar and US government bonds behave the same as gold because investors fled to the two assets to secure their investment. Responding to this, one of the IMF's senior economists expressed their disapproval. Olivier Blanchard, the economist, said that since the financial crisis, the Dollar's reputation as a safe haven currency is vulnerable, because the link between its strength and the amount of "flight" to US Treasuries has also declined. In addition, Blanchard warned that although the US economy has improved, there are still problems with debt payments looming. Politically, the US economy is also uncertain. For this reason, it is doubtful to regard the US Dollar as a safe haven asset.

Determining the time to invest in safe haven assets is probably a difficult decision. After the end of the global financial crisis, the market will rebound and it's time you enter. But when there is a recession, you can glance back at safe haven assets. In determining the time to invest in safe haven assets, you should also pay attention to the economic cycle of a country from the targeted assets. You don't have to switch to safe haven assets only when economic conditions are uncertain. If you diversify well into your assets, safe haven assets can also be included in the portfolio. That is because safe haven can still be profitable, both when economic conditions are expanding or when it is uncertain.

#1 - September 30, 2019, 11:23:48 PM

  • Full Member
  • Posts: 190
  • Points: 150
  • Likes Received: 18
  • Reputation: +3/-0
If you think for safe havan whether more profitable or vice versa, because if these conditions the opportunity for profit also tends to be small. 
Because the risk is directly proportional to the loss.
#2 - October 02, 2019, 10:02:40 AM

  • Newbie
  • Posts: 10
  • Points: 0
  • Likes Received: 0
  • Reputation: +0/-0
safe haven is a safe asset for long term investment.
#3 - October 04, 2019, 02:51:29 AM

  • Full Member
  • Posts: 131
  • Points: 174
  • Likes Received: 2
  • Reputation: +0/-0
save haven in my understanding is a safe currency that is often used by traders or investors to hedge and hide from economic storms that often hit a country. Save haven for example is gold, silver, JPY, USD or Swiss france.
#4 - January 14, 2020, 10:15:20 AM

  • Full Member
  • Posts: 180
  • Points: 299
  • Likes Received: 6
  • Reputation: +1/-0
As far as I know, save haven is a safe currency such as JPY, gold and CHF and is usually used as an escape currency if march is uncertain and global economic conditions are unstable.
#5 - January 20, 2020, 02:29:29 AM

  • Full Member
  • Posts: 192
  • Points: 494
  • Likes Received: 3
  • Reputation: +0/-0
Secure assets such as gold and silver and some currencies in some developed countries are often the first choice to save assets or hedges. But I pay so little attention to save haven maybe indeed because I am only a retailer ;D
#6 - January 20, 2020, 06:42:10 AM

  • Hero Member
  • Posts: 1048
  • Points: 5674
  • Likes Received: 111
  • Reputation: +4/-0
It seems that save havens are now not only currencies and precious metals but there are also coins that we can use to save havens such as bitcoin or even USDT which is said to be undermined by fluctuations in the value of coins / altcoin.
#7 - January 20, 2020, 09:04:16 AM

  • Full Member
  • Posts: 159
  • Points: 598
  • Likes Received: 9
  • Reputation: +1/-0
In my opinion, the save haven in USD is still far from jpy or other currencies because it is the USD that experienced the most turmoil because it is a medium of world exchange.
#8 - January 20, 2020, 09:22:45 AM

  • Full Member
  • Posts: 182
  • Points: 319
  • Likes Received: 7
  • Reputation: +0/-0
save haven is commonly referred to as a safe currency and for escaping or hiding from volatile currency turmoil, the save haven that I know is most often used is gold because gold has a value that never eroded by time.
#9 - January 27, 2020, 10:16:14 AM

  • Full Member
  • Posts: 132
  • Points: 193
  • Likes Received: 2
  • Reputation: +0/-1
I often read about the save haven and indeed its influence is huge on currency movements in the forex market, especially when there is one major currency pair affected by the crisis and one of the save haven will be very strong and influential because there are many investors moving there.
#10 - January 27, 2020, 04:48:31 PM

  • Full Member
  • Posts: 159
  • Points: 311
  • Likes Received: 7
  • Reputation: +0/-0
The oldest and best known save haven is gold, why is gold a save haven because the value of gold has never been timeless even though for centuries even the value of gold has always increased or increased.
#11 - February 03, 2020, 07:22:25 AM

  • Full Member
  • Posts: 151
  • Points: 178
  • Likes Received: 4
  • Reputation: +1/-1
I am quite familiar with save havens, but I rarely invest or save money in save havens except in the form of gold and silver in the form of jewelry, maybe that's more common.
#12 - February 17, 2020, 07:58:33 AM

  • Jr. Member
  • Posts: 65
  • Points: 348
  • Likes Received: 3
  • Reputation: +0/-0
real examples of safe havens most often used for hedging are gold and silver. these two precious metals have always had a timeless value.
#13 - February 25, 2020, 03:42:28 PM

  • Jr. Member
  • Posts: 67
  • Points: 466
  • Likes Received: 1
  • Reputation: +0/-0
save haven is a runaway currency and investors consider that save haven assets are safer and more stable and can save the assets that we have.
#14 - February 26, 2020, 04:13:02 PM

  • Full Member
  • Posts: 234
  • Points: 426
  • Likes Received: 12
  • Reputation: +1/-0
save haven is a safe asset and not only in the form of currency but also metals starting and even bonds. Examples of popular save haven assets are gold, developed country currencies and US bonds.
#15 - March 02, 2020, 04:03:39 PM


0 Members and 1 Guest are viewing this topic.