Safe-Haven Asset

A safe-haven asset is something investors buy specifically to protect money during uncertainty, gold, US Treasury bonds, and the Japanese yen are the classic examples, rather than to chase a return. Demand for these assets tends to spike during wars, financial crises, or sudden shocks, even when their own underlying yield or growth prospects haven't changed at all. That's why gold can rally on a geopolitical headline that has nothing directly to do with gold mining or jewelry demand, it's fear buying, not fundamentals.