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Get to know Safe Haven

Undeniably, the current economy is quite volatile in cryptocurrency exchanges, so investors have begun to seek risk insurance, such as low-risk or low-volatile investments called Safe Haven. Today, ACU PAY will tell you what Safe Haven are there for investors.

Content

Gold

Gold is a valuable asset that cannot be remade like money. The value of gold is known to not decrease in line with inflation. Currently, there are a lot of gold investments such as gold savings through mutual funds, as well as buying ornamental gold and gold bars. Some may view gold as a risky asset since the situation of epidemics, wars, and national politics make gold fluctuations, but in the long run, the price of gold will always rise.

Government bonds

Government-issued bonds are also considered safe haven. Another thing that is popular among investors who do not like high risk because they are issued by the government which they can be sure that it is going to get a return on a given period and get a return on what the bank originally set.

Of course, government bonds are another safe haven for investors who have cold money. However, there is a risk that if interest rates rise, they will lose their right to raise interest rates accordingly since bonds have fixed interest rates. Nevertheless, no matter how much interest you get, the principal won’t disappear.

Defensive Stock

It is a stock that does not rise and fall in line with the economic conditions and you will get consistent returns such as electricity, tap water, essential supplies, and hospitals. It is an investment regardless of the economy, the return on investment remains consistent because the economy does not affect profit-making, but returns are relatively small compared to other investments. It is a safe haven that investors who do not like high risks tend to invest in.

Cash

It is the most liquid asset, but having cash is like storing money, which means there is no profit. It may be vulnerable to inflation, but it can be used to buy assets and invest in other parts when the economy goes down.

Large Currency

As investors know, the currency is constantly going up and down. Exchanging money to prevent currency fluctuations is another way to do so. The Swiss franc is a very stable and safe currency. It is a strong currency, high cost of living, and low unemployment. Investors who want to invest safely choose to exchange money and invest at the exchange rate.

There are many ways to invest. Investing in safe haven is another investment that most risk-avoiding investors are interested in, including those who have some cold money in the bank. At least they use their money in long-term investment, even if they do not earn large profits, the risk of principal loss is very low. Investing in all safe havens is another good investment.

References from
scb / techsauce

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