Recently, I’ve been pondering a question: in the event of an extreme global conflict, what is the most preservable asset during war? This is not alarmism but a serious reflection on asset allocation logic.

Traditional investment portfolios may become completely ineffective in such situations. We need to reassess which assets can survive amidst turmoil. The first that comes to mind is gold. For thousands of years, gold has been regarded as the ultimate safe-haven asset because it doesn’t rely on any government or financial system. During war, inflation, or currency collapse, gold can endure. Silver, although more volatile, also retains value in crises—just with higher risk.

Hard currencies are also crucial. Globally recognized currencies like the US dollar and Swiss franc can provide liquidity and purchasing power during war. But here’s a paradox—war itself causes severe currency fluctuations, so relying on just one currency isn’t wise. A multi-currency allocation is a more rational choice.

Next, physical commodities. Energy and food demand doesn’t decrease during wartime; it often surges. Oil, natural gas, agricultural products—these tend to see prices skyrocket. Especially food—if supply chains break down, owning agricultural land becomes equivalent to holding survival resources. That’s why some consider purchasing farmland as a long-term preservation strategy.

In the stock market, defensive sectors tend to resist declines. Defense companies receive large government orders during wartime, and consumer staples (food, medical supplies) maintain steady demand, helping them stay relatively strong.

Cryptocurrency is a more complex topic. Bitcoin claims to be a “borderless” asset, not controlled by any government, which theoretically gives it an advantage during war. But in reality, war can destroy network and power infrastructure, posing a deadly threat to crypto usability. Plus, its inherent volatility can make it extremely unstable in extreme situations.

Real estate also depends on the context. Properties and land in neutral zones of developed countries, especially self-sufficient farmland, tend to have stronger preservation ability. But if located in conflict zones, that’s another story.

There’s also a category of assets often overlooked—physical supplies. In extreme scenarios where the monetary system might collapse, food, fuel, and medical supplies are assets in themselves. They can be used directly or serve as exchange mediums.

From a global asset allocation perspective, what is most preservable during war? The answer is assets that do not depend on a single national economy. Therefore, an ideal strategy is diversification: precious metals, multi-currency hard assets, energy and agricultural commodities, neutral country bonds, defensive stocks, physical resources, and even spreading some assets across historically neutral nations. There’s no perfect preservation solution, but risk diversification remains the most pragmatic approach.