What to Own When the Dollar Collapses: 10 Safe-Haven Assets

A sudden collapse in the U.S. dollar can trigger chaos across financial markets, eroding purchasing power, spiking inflation, and destabilising global trade.

With growing concerns over the dollar's weakening standing, rising U.S. fiscal deficits, trade tensions, and erosion in policy credibility, investors are looking to diversify beyond traditional dollar-dependent holdings. 

Here are ten assets considered likely safe havens if the U.S. dollar suffers a sustained decline.

What to Own When the Dollar Collapses? Safe-Haven Assets to Consider

1. Gold: The Classic Hedge Against Dollar Meltdown

Gold remains the premier safe-haven asset. In 2025, the yellow metal surged more than 25%, reaching $3,300–$3,500/oz, driven by geopolitical tensions, fading confidence in U.S. policy, and heavy central bank buying.

For example, gold imports into ETFs soared as SPDR Gold Shares attracted $8.5 billion in inflows in 2025 alone, compared to just $366 million in 2024.

Despite short-term profit-taking, analysts assert that any decline is minimal, as gold remains in robust demand amid increasing tariffs and global uncertainty. As gold is physical and cannot be printed, it preserves wealth when fiat currencies depreciate.

2. U.S. Treasury Bonds: Government Bonds in a New Light

U.S. Treasury securities are typically the bedrock of safe‑haven protection. Yet in 2025, with rising yields and inflation risk, their effectiveness is under scrutiny. 

Nonetheless, in a scenario of a dollar collapse where falling interest rates are expected, Treasury bonds would likely regain value as yields decline, and investors seek liquidity or capital preservation.

3. Japanese Yen (JPY): Asia's Financial Safe Haven Currency

The Japanese yen often strengthens when the dollar collapses, especially amid cross-asset selloffs. Japan's deep capital markets, global trade surplus, and status as a low-yield currency make it attractive during crises. 

According to analysts, in 2025, the euro, yen, and Swiss franc have all appreciated against the dollar even as U.S. equities fell, signalling a structural shift away from dollar dominance.

4. Swiss Franc (CHF): Stability in Political Neutrality

The Swiss franc is a reserve-grade currency valued for its stability, supported by Switzerland's political neutrality and robust banking system. 

When global capital flees dollar risk, CHF often benefits. In 2025, its use as a safe haven climbed as investors questioned the dollar's reliability.

5. Euro (EUR): Diversified Reserve Alternative

Though not as safe or liquid as USD, the euro serves as a major reserve currency. During the dollar's recent weakness, the euro rose as investors increasingly hold euros to diversify away from dollar concentrations.

6. Swiss and German Bunds (Foreign Govt Bonds)

In addition to U.S. Treasuries, government bonds from strong euro-zone countries such as Germany and Switzerland provide diversification during a dollar crash. Bunds benefit from strong credit, political stability, and deep liquidity, offering investors a hedge outside U.S. jurisdictions.

7. Defensive Stocks & Consumer Staples

Defensive stocks—firms in consumer goods, utilities, and healthcare—typically perform better during equity declines and currency pressures.

Businesses like Walmart, Costco, and major utilities often maintain earnings regardless of economic cycles, providing relative safety when equities crash.

8. Real Assets & Commodities Beyond Gold

Assets such as commodities (silver, platinum, base metals) and inflation-adjusted products can serve as safeguards against inflation and currency depreciation.

Silver is up around 32% in 2025, reaching nearly $40/oz. While industrial demand has slowed, its use as a store of value has returned: some analysts suggest silver gains more during stagflation scenarios.

9. Central Bank Reserves / Physical Sovereign Gold Holdings

As central banks increasingly diversify reserves away from the dollar, holdings of gold, euros, and yuan (albeit limited by convertibility) act effectively as safe-haven assets. 

Emerging markets in China and Turkey are among those accumulating gold at elevated rates, with global demand increasing ~3% in Q2 2025, supporting prices.

10. Cryptocurrencies (Bitcoin) – Digital Speculative Hedge

Despite being debated as a safe haven, Bitcoin has occasionally increased in value during U.S. policy upheavals or periods of uncertainty. Nonetheless, research indicates that its role as a safe haven is not supported.

The extreme volatility and speculative characteristics of crypto render it a risky hedge rather than a primary safe-haven asset, although some investors designate a small fraction as digital insurance.

Macro Drivers Behind Safe-Haven Demand in 2025

• Dollar losing status: During multiple declines in 2025, both U.S. equities and the dollar decreased simultaneously, disrupting past trends where the dollar typically strengthened during U.S. risk-off situations. Analysts suggest this reflects structural distrust in U.S. data and institutions.

• Trade and geopolitical shocks: Tariff escalations on imports from Canada, India, Brazil, and Taiwan rekindled fears of global trade wars, boosting safe-haven flows into gold and non-dollar currencies.

• Fed policy credibility concerns: President Trump's appointments to the Fed and the replacement of the Labour Statistics leadership rattled investor belief in data integrity, prompting dollar weakness and support for alternative assets.

Long-Term Strategy: Diversifying Beyond Dollar Exposure

A well-constructed portfolio facing a dollar decline scenario might include:

• 10–20% in physical or ETF gold

• 5–15% in global sovereign bonds (non‑USD)

• Currency exposure in JPY, CHF, or EUR

• 5–10% in defensive equity positions

• 2–5% in non-correlated commodities or Bitcoin, if tolerated

Prompt rebalancing, disciplined stop-loss measures, and options hedging (such as USD-JPY puts and gold call spreads) can further enhance resilience.

Conclusion

In conclusion, while the U.S. dollar has historically been the ultimate safe-haven asset, 2025 marks a notable pivot. Declines in the dollar, equity and bond sell-offs signal that investors may now need alternative hedges.

Thus, in a time of possible dollar dominance, diversifying into established non-USD safe havens is not only wise but could be crucial for the sustained preservation of wealth and capital stability.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.