Gold and cryptocurrencies as safe-havens: Lessons from wartime

Boris Pastén-Henríquez, Pablo Tapia-Griñen and Jorge Sepúlveda-Velásquez

Finance Research Letters, 2025, vol. 79, issue C

Abstract: During wartime, investors seek safe havens for various assets, creating volatility in the financial markets. This study analyzes the safe-haven capacity of a group of assets during the Russia–Ukraine and Palestine–Israel conflicts. Using DCC−GARCH and event study, we find that assets with an upward correlation with the market before the conflict, which we define as a positive push, manifest safe-haven asset capacity and potentially bullish returns. These results could be key in the design of investment strategies.

Keywords: Safe-haven; Cryptocurrencies; Gold; Oil; War; DCC-GARCH; Event study (search for similar items in EconPapers)
JEL-codes: F37 F51 G11 G14 G15 Q02 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:79:y:2025:i:c:s1544612325004933

DOI: 10.1016/j.frl.2025.107230

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