The 2008 Global Financial Crisis and COVID-19 Pandemic: How Safe are the Safe Haven Assets?

We compare the performance of safe-haven assets during the Global Financial Crisis (GFC) and COVID-19 pandemic. First, regarding the GFC, we find, intermediate (weak) safe haven evidence for US dollar, Swiss franc and T-bonds (Gold, Silver and T-bills). Second, with regard to COVID, we find gold is very risky in some settings, while silver has become extremely risky. Collectively, our findings suggest that the character of safe-haven assets has changed between the crises. Therefore, investors should exercise extreme care when investing in potential safe-haven assets during times of market stress.

Keywords: COVID-19; 2008 GFC; safe haven assets

JEL Classification: D8, G01, G10, G11, G14, G14

Suggested Citation: Suggested Citation

Cheema, Muhammad A. and Faff, Robert W. and Szulczyk, Kenneth, The 2008 Global Financial Crisis and COVID-19 Pandemic: How Safe are the Safe Haven Assets? (January 30, 2022). Available at SSRN: https://ssrn.com/abstract=3590015 or http://dx.doi.org/10.2139/ssrn.3590015