Investors flock to safe haven assets as fears of recession grow

Investors flock to safe haven assets as fears of recession grow


As fears of a coronavirus-induced recession continue to rise, investors are rushing to buy safe haven assets such as gold, government bonds and the Japanese yen.

Rise of Gold Prices

Gold prices have been on the rise since the start of 2020, hitting a near seven-year high in the first quarter of the year. Investors believe that gold is a safe-haven asset in times of economic uncertainty, and will continue to rise as the coronavirus pandemic continues to spread. This has led to a surge of investors buying gold, pushing up its value even further.

Government Bonds

Government bonds have also been in demand as investors look for safety as the global economy weakens. Government bonds are considered a reliable investment because governments have the ability to print money and pay back their debts, thus providing more assurance for investors.

Japanese Yen

The Japanese yen has also been on a steady rise, as investors flock to the currency in search of a safe haven. The yen is often used as a hedge against risk, and its safe-haven status has been reinforced by its recent steady increase as worries over a recession persist.

Conclusion

Investors are looking for safe haven investments as the threat of a recession grows. Gold, government bonds and the Japanese yen are all seen as reliable investments with a track record of success in times of economic uncertainty. In the current environment, investors are turning to these assets in order to minimize their risk.

Key Takeaways:

  • Investors are flocking to safe-haven assets as fears of recession grow.
  • Gold prices have been on the rise, as investors look for a safe haven.
  • Government bonds and the Japanese yen are also in demand as investors seek safety in uncertain times.

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