When fear is high and markets shake,the havens are what holders take.
An asset that investors have historically moved towards in periods of market stress, such as gold, the Swiss franc, the Japanese yen or US Treasury securities.
The description refers to past behaviour and is not a guarantee of how an asset will behave.
In plain words
A safe haven is an asset that investors have tended to buy when markets are frightened, for example during a financial crisis or a sharp fall in share prices. Gold, the Swiss franc, the Japanese yen and US government bonds have often been described this way.
See it move
Market stress and Gold
Why it matters
The idea helps to explain why some currencies and gold have at times moved against shares in periods of stress. The label is drawn from past behaviour, and an asset that rose in one crisis has not always risen in the next.
A common mistake
Safe does not mean the price cannot go down. A safe-haven asset can lose value, sometimes quickly, including in the middle of a crisis when investors sell whatever they can to raise cash.
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Educational information, not investment advice or a recommendation to trade.