The Effect of Safe-Haven Assets on Mitigating Crisis-Period Financial Risk

Abstract

This study conducts a systematic literature review of research published between 2019 and 2024 on the role of safe haven assets in mitigating financial risk during crisis periods. It synthesizes evidence on traditional instruments such as gold, sovereign bonds, and reserve currencies, as well as alternative assets including cryptocurrencies, commodities, and green bonds. The review highlights that safe haven performance is highly context dependent, varying across asset classes, crisis episodes, regions, and investment horizons. Gold and high-quality government bonds generally provide the most reliable protection against severe equity market stress, whereas cryptocurrencies behave mainly as speculative assets that offer, at best, weak or episodic crisis insulation. Evidence on green bonds and other sustainable assets indicates promising but mixed protective properties that depend on market depth and the nature of the shock. The findings emphasize that investors and policymakers should treat safe haven status as conditional and dynamic, designing crisis resilient portfolios through diversified, asset specific strategies rather than relying on any single refuge across markets and risk regimes.