Safe haven commodities are assets that are viewed by investors to have a greater degree of stability than others. They are known either to be in continuous demand (for example, food), restricted supply (precious metals), or unable to increase in supply quickly enough to meet increasing demands (for example, coffee and cocoa).
Gold has a strong reputation as a safe haven asset, and has offered a sense of security to investors in the past. Many traders have relied on gold to turn a profit in periods of crisis - for example, during periods of significant economic downturn, currency slumps, or war – when their open positions on other securities have taken a turn for the worse.
ETX Capital offers a large selection of commodities to trade on within the categories of metals, agriculture, livestock and energy. Register here to start live trading today, or try a demo account first.
To learn more about trading commodities, read up on our ‘What are Commodities’ and ‘How to Trade on Commodities’ pages.