Safe-haven assets: Protect your wealth in market chaos

In April 2025, as global markets shuddered under the weight of escalating US-China trade tensions and President Trump’s aggressive tariff announcements, gold prices soared past USD 3,300 per ounce, cementing its status as a beacon of stability. Meanwhile, Bitcoin, often dubbed “digital gold,” surged 23% amid the chaos.

These are prime examples of safe-haven assets—investments that hold or gain value when markets turn turbulent. For traders, understanding and trading these assets can be a lifeline in volatile times, protecting portfolios from steep losses or even yielding profits.

What are safe-haven assets?

Safe-haven assets are investments that investors flock to during economic or geopolitical uncertainty. They are prized for their low volatility, high liquidity, and ability to retain value when stocks or riskier assets falter. Think of them as lifeboats on a stormy sea—while other investments may sink, these keep your portfolio steady.

Here are the most common safe-haven assets:

• _{Gold: A tangible asset that shines in crises. In 2025, gold surged 26% as trade war fears intensified, proving its enduring appeal.}
• _{US Treasuries: Government-backed bonds traditionally seen as ultra-safe, though recent sell-offs in 2025 have raised questions about their reliability.}
• _{Swiss franc and Japanese yen: Currencies from stable economies, often strengthening when global confidence wanes.}
• _{Bitcoin: Once a speculative asset, Bitcoin has gained traction as a safe haven, rallying above USD 90,000 in April 2025 during tariff-driven market dips.}

These assets act as a hedge, balancing losses in riskier holdings like stocks or emerging market currencies. For retail traders, they offer a way to safeguard wealth or capitalise on market fear.

Why safe-haven assets shine in market turmoil

Markets turn turbulent when uncertainty spikes—think geopolitical conflicts, trade disputes, or economic slowdowns.

In April 2025, Trump’s announcement of 145% tariffs on Chinese imports triggered a global sell-off, with the S&P 500 dropping 4% in a week. Investors, seeking shelter, poured capital into safe-haven assets, driving up their prices.

This flight to safety is a hallmark of investor behaviour. When confidence in stocks or fiat currencies erodes, assets like gold or the Swiss franc become go-to havens.

For instance, as US Treasuries faltered in 2025—losing their safe-haven allure due to tariff-related instability—gold and Bitcoin stole the spotlight. Gold hit record highs, while Bitcoin’s 23% rally underscored its growing role as a hedge against uncertainty.

However, safe havens aren’t immune to short-term dips. Gold, for example, briefly fell 5% in 2025 due to margin calls during peak volatility.

Still, their long-term stability makes them a powerful tool for traders. By trading safe havens, you can protect your capital or profit from market fear, turning turmoil into opportunity.

How to trade safe-haven assets

Trading safe-haven assets doesn’t require a finance degree—just a clear strategy and discipline. Here is a step-by-step guide to get started, tailored for non-professional traders:

Step 1: Choose your asset

Select a safe-haven asset based on your trading style and market conditions:

• _{Gold: Trade via exchange-traded funds (ETFs) like the VanEck Junior Gold Miners ETF, which soared 40% in 2025, or use contracts for difference (CFDs) on platforms like VT Markets for leveraged exposure.}
• _{Forex pairs: Trade USD/CHF or USD/JPY to gain exposure to the Swiss franc or Japanese yen, both liquid and accessible via forex brokers.}
• _{Bitcoin: Available on crypto exchanges or as CFDs for short-term trades. Its volatility suits experienced traders comfortable with risk.}

Step 2: Analyse market conditions

Stay ahead by monitoring news and technical signals:

• _{Follow news feeds for triggers like tariff announcements or central bank policy shifts. For example, US-China trade talk breakdowns in April 2025 signalled a gold rally.}
• _{Use technical indicators like the Relative Strength Index (RSI) or 50-day moving averages to time entries. Gold’s breakout above USD 3,200 in 2025 was a clear buy signal for traders.}

Step 3: Manage risk

Protect your capital with disciplined risk management:

• _{Set stop-loss orders to cap losses. For instance, if you buy gold at USD 3,200, place a stop-loss at USD 3,136 (2% below) to limit downside.}
• _{Avoid high leverage, especially on volatile assets like Bitcoin. Stick to 10:1 leverage or lower to manage risk.}
• _{Use VT Markets’ risk management tools, like real-time alerts, to stay on track. VT Markets offers powerful tools to support your trading—demo accounts, advanced charting, and educational resources. Start with these to hone your skills and trade smarter.}

Step 4: Diversify

Don’t put all your eggs in one basket. Combine safe havens (e.g., gold and the Yen) with other assets to balance risk and reward.

Risks and considerations

Safe-haven assets are not a magic bullet. Even gold can be volatile short-term, as seen in its 5% dip during 2025’s margin call frenzy. US Treasuries, once a bedrock, lost appeal amid tariff-driven uncertainty. Over-relying on safe havens can also mean missing growth opportunities in calmer markets.

Trading costs are another factor. CFDs and ETFs carry fees, and high leverage can amplify losses if markets move against you. Emotional trading—panic-buying gold at peak prices, for instance—often leads to poor decisions.

To stay safe, stick to a trading plan, use stop-losses, and rely on trusted platforms like VT Markets for market insights and tools.

Conclusion

In a world of market uncertainty, safe-haven assets like gold, the Swiss franc, and even Bitcoin are your anchors. As 2025’s trade war turmoil showed, these assets can protect your portfolio or deliver profits when stocks falter. By choosing the right asset, analysing market signals, and managing risk, you can navigate volatile markets with confidence.

Ready to take control? Start exploring safe-haven trading with VT Markets’ demo account to practise risk-free, or dive into the educational resources to sharpen your skills. For those eager to trade live, open a live account with VT Markets today and access powerful tools to trade gold, forex, and more. In turbulent times, safe-haven assets are your edge—trade them wisely to stay ahead.