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A widening Middle East conflict is gripping Wall Street as investors try to assess the potential impact of U.S. attacks on Iran and as oil prices continue to surge amid concerns about supply chain disruptions.
For many investors, this increased volatility could prompt them to act swiftly and move toward safe-haven assets as a financial shield against continued market instability.
A safe haven is an investment or asset that maintains or increases its value even in a volatile market or in times of economic or political uncertainty. Basically, its value isn’t directly impacted by what’s happening in the news cycle, economy, or political arena. These assets aren’t completely safe, but historically they’ve tended to be more stable investments during periods of instability.
Watch: Safe-haven assets: Breaking down what you need to know
There are a few key traits that make a safe-haven asset attractive to investors. This includes:
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Liquidity: Investors can buy and sell the asset quickly and easily if need be.
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Scarcity: A limited supply of a particular asset can help preserve its value, making it a desirable safe-haven asset.
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Low volatility and correlation to other riskier assets: The asset’s price moves independently of the prices of other, riskier assets.
Several assets are considered “safe havens” for investors. This includes:
Gold is often touted as a safe-haven asset because its value tends to rise even in times of uncertainty.
It can also provide a hedge against inflation because there is a limited amount of this asset, unlike the amount of fiat currency (or government-issued currency), which can always increase if the government decides to print more.
Gold’s price tends to rise as the value of the dollar decreases. It also allows investors to diversify their portfolios with a tangible asset.
Silver can be a worthwhile investment as well, though it differs from gold in that there is real industrial demand for it due to its role in electronics, electric vehicles, and more. While it can serve as an inflation hedge, its price can be tied to times of economic growth.
Gold and silver prices hit record highs in late 2025 in response to a slew of new tariffs, and although prices have fallen, JPMorgan forecasts demand from central banks and investors will ultimately push gold prices to $6,300 per ounce by the end of 2026.
Read more: How to invest in gold in 4 steps
Treasury bills, or T-bills, are short-term securities with maturities of up to 52 weeks. In some cases, you can get a higher rate on a T-bill than you can on a high-yield savings account — right now, rates range from 3.4% to 3.64%.
T-bills are considered very safe because they’re backed by the full faith of the U.S. government, which guarantees that investors will get the principal paid back. One big benefit of T-bills is that interest income is exempt from state and local taxes, which can be a selling point for investors in high-tax states.
Cash is generally considered a safe-haven asset because it provides stability that money invested in the stock market or other riskier assets cannot during periods of market volatility. Cash preserves its nominal value and protects investors from market swings. However, there is an opportunity cost because physical cash does not generate returns.
The Swiss franc, Japanese yen, and U.S. dollar are considered safe-haven currencies that typically retain or increase in value during periods of instability. “Safe currencies” usually belong to politically stable countries that offer strong liquidity.
Defensive stocks are shares of companies in sectors that will continue to thrive, even during economic downturns. This includes companies that offer consumer staples, healthcare products, household and nondiscretionary purchases, utilities, and more.
These stocks tend to offer some protection during market swings because consumers still depend on them for certain products and services.
Watch: Defensive vs. cyclical stocks: How investors should position
Safe-haven assets can certainly help mitigate the risk that geopolitical events pose to the market, but they are not risk-free. It’s also important to consider how investing in a lower-risk safe-haven asset could potentially yield lower returns.
For some investors, trading higher yields for stability is worth it, but this depends on your risk tolerance, investment goals, and strategy.