SINGAPORE — Gold has claimed the safe haven crown. With spot prices surging 30% so far in 2025, bullion’s gains are outpacing that of other traditional safe havens such as the Japanese yen, Swiss franc, and U.S. Treasurys — compelling investors to rethink what true safety looks like in the face of fiscal sustainability concerns and looming wars.
At the heart of gold’s appeal is its freedom from government liabilities, market experts gathered at the annual Asia Pacific Precious Metals Conference told CNBC on Monday.
“Gold’s key advantage is that it is no one else’s liability,” said Nikos Kavalis, managing director at Metals Focus. “When an investor owns Treasurys, other sovereign bonds and even currencies, they are ultimately buying into the respective economy,” he said.
To take stock of the performance of other typical safe havens since the start of the year: The dollar index, which measures the value of the greenback against a basket of currencies, has weakened close to 10% in the year to date. Safe haven currencies such as the Japanese yen and Swiss franc strengthened about 8% and 10% against the dollar, respectively, in the same period of time.
Yields on the benchmark 10-year U.S. government bond is around 19 basis points lower in the year to date. Yields and prices move inversely in the bond market, meaning lower yields equal higher prices.
