Kind
of safe-haven investments are investments that have a low level of risk in the
period when the global economy is uncertain. The problem is a kind of safe
haven investment is safe haven to the type of investment is no longer a safe
haven. There are several types of assets that currently belong to the
safe-haven US government bond among them, gold and silver, land and property.
Things you need to know is to decide when you're going into these assets.
The
classic example is the US government bond. In this case the coupon payments and
the principal amount is fully guaranteed by the US government. And because the
US government has never been considered a default (fail) in debt, the US
government bonds are considered safe-haven investment types. Many governments
of other countries are also issuing bonds, but the level of risk is not always
the same. For example, the Russian government never defaults in paying the bond
in 2000, and the Australian government in the 1930s. Some European countries as
well as in the event of a debt crisis until 2012.
Besides
the US government bond that can be drawn based on the strength of the US
government's credibility, some kind of safe haven assets physically unchanged
despite the global economic turmoil such as gold and silver, land and property.
However if the current investment in gold and silver is really no risk or low
risk? The current gold price is significantly higher than in the 1980s that at
the level of USD 300 to USD 400 per ounce, but the last 2 years tend to
continue to decline from a high of USD 1920.72 in September 2011.
Gold
is no longer considered a safe-haven asset types when its value suddenly
dropped to nearly the levels of the 1980s. Many individual investors in
Australia who consider the type of land and property assets is the least of the
level of risk, but lately many are not satisfied with the decline in property
prices due to the influence of the global financial crisis.
Time
to invest into safe-haven asset types probably is a difficult decision. Will
you wait until the price of the asset for which you have fallen and then sell
them to put into safe haven assets? It seems reasonable at this time but the
problem may be a loss you have built up.
After
the expiration of the global financial crisis, the stock market will rebound
and the time you signed in, but when the recession you can glance at safe haven
assets. In determining the time to invest you should consider the economic
cycle of the country where you want to invest.
You
do not have to switch to the type of assets safe haven only when the economic
situation is uncertain, if you diversify properly on assets, then porto-folio
you are also the sort of asset safe haven, which can still be profitable either
when conditions the economy is expanding and when the economy is uncertain.
Source:
www.thebull.com.au: What are the safe haven investments ?, by: Richard Heaney
