Synopsis: War and crisis shake the world. Markets fall, currencies swing and investors scramble. But some assets not only survive but also thrive. In this article, we will highlight the best investments during wartime and global conflicts.
War and warfare bring about great vagueness in world markets. The prices of stocks tend to plunge downwards in alarm and turmoil. During this period, intelligent investors hedge in assets which have been able and are able to maintain or increase in value in the past.This article talks about five different asset classes, which are likely to make it in the time of war.
Best 5 Assets During Global Crisis
Gold and Silver
During global crisis, gold and silver prices stay firm. Gold and silver exchange-traded funds (ETFs) climbed as much as 5 percent on Thursday, supported by strong demand for safe-haven assets amid rising geopolitical tensions in the Middle East. In India, 24-carat gold increased in early March, 2022, from an approximate of ₹52,000/10g to ₹53,890/10g due to supply disruptions by Russia, a major producer, as the Russia-Ukraine War commenced in early February, 2022. In India, investors can invest in gold in multiple ways such as physical gold, ETFs, SGB, digital gold and gold mutual funds.
Energy commodities- Oil and Natural Gas
Energy companies can also benefit if supply chain is disrupted driving oil and Gas prices higher. Oil and gas prices are prone to be pushed high by disruptions of the pipeline, embargoes, and geopolitical tensions. Those who have invested in such commodities through futures, ETFs or energy funds may gain the wartime spikes.
The Russia-Ukraine War has moved the India crude oil basket out of $79/bbl in FY2022 to 98/bbl in 9M FY2023, which offers energy futures and ETFs opportunities. Recommendation: MCX crude oil futures or an energy-oriented fund; short positions made 20-30% in 2022 highs.
Also read: 8 Smart Tax-Saving Strategies for 2026 Under the New Tax Regime
Agricultural Commodities
Global conflicts can disrupt supply chains of food and food exports. Prices can spike if major exporters like wheat, grains are involved in the conflict. Agricultural goods are essential demand commodities, so they remain in demand even during economic crises, wartime and conflicts. For example- Wheat prices surged during and after the Russia–Ukraine War because both the countries are major global exporters of agricultural commodities. You can trade agricultural commodities on Indian commodity exchanges like Multi Commodity Exchange of India (MCX) and National Commodity & Derivatives Exchange (NCDEX).
Currencies- U.S dollar, Swiss Swiss Franc and Yen
In times of global conflicts, US dollars often strengthens. Because it is still the world’s reserve currency. But if United States is directly involved in the war, the dollar can pressured by rising debt and inflation. Investors can then diversify to Swiss Franc or Japanese Yen. Both are seen as save currencies. The U.S. dollar, the Swiss franc as well as the Japanese yen are safe-haven currencies due to their good governments, sound economies and deep liquidities.
During the Russia-Ukraine War, INR dropped to record-low levels of around 77.9/USD, providing 5-10 percentage point returns to USD holders; Swiss Franc appreciated steadily during crises.
Bonds Government and High Quality Corporate Debt
Bonds, especially those issued by the governments are usually regarded as the foundation of stability during unpredictable periods. They offer fixed income, an unchanging returns profile and the risk profile is lower than equities. When the war is on, most governments issue war bonds in a bid to finance their military costs and also provide good returns to the investors. Inflation may eliminate any fixed returns, but short to medium term bonds, particularly those of stable countries tend to do better than volatile stocks. Income stability in the important sectors such as utilities or defense suppliers can also be provided by corporate bonds during the times that other industries are making losses.
In the face of the latest India-Pakistan unrest (e.g. 2025 Kashmir dispute), G-Sec 10 years yield shot to 6.7% as investors took shelter and provided certain coupons. Recommendation: RBI Retail Direct G-Secs or AAA corporate bonds; in case of Kargil bond prices remained stable as stocks regained 29-34 percent value in 12 months.
Also read: 6 Government-Backed Saving Schemes Offering Strong Long-Term Returns in 2026
Conclusion
During wartime, industries like airline, travel and luxury goods suffer as consumers reduce using this areas. During crisis, buying habits of people. People focus more on essentials like food, grocery items, energy and security. Non-essential sectors like tourism or entertainment often weaken while staples and utilities hold up better. Inflation tends to rise during wars. Precious metals, energy commodities, property, safe-haven currencies, and bonds have demonstrated themselves as strong asset classes in an unstable environment around the world. Diversifying portfolios between these alternatives will help investors to preserve wealth, keep the income going, and be ready to seize the opportunities that will arise should peace finally come back.
Written by Jayanth R Pai
