Does_gold_offer_a_better_protection_against_sovereign_debt_crisis_than_other_metals_ACCEPTED_FINAL.docx.pdf (1.42 MB)
Does gold offer a better protection against sovereign debt crisis than other metals?
journal contribution
posted on 2023-06-08, 16:17 authored by Sam Agyei-Ampomah, Dimitrios Gounopoulos, Khelifa MazouzIt is a commonly held view that gold protects investors’ wealth in the event of negative economic conditions. In this study, we test whether other metals offer similar or better investment opportunities in periods of market turmoil. Using a sample of 13 sovereign bonds, we show that other precious metals, palladium in particular, offer investors greater compensation for their bond market losses than gold. We also find that industrial metals, especially copper, tend to outperform gold and other precious metals as hedging vehicles and safe haven assets against losses in sovereign bonds. However, the outcome of the hedge and safe haven properties is not always consistent across the different bonds. Finally, our analysis suggests that copper is the best performing metal in the period immediately after negative bond price shocks.
History
Publication status
- Published
File Version
- Accepted version
Journal
Journal of Banking and FinanceISSN
0378-4266Publisher
ElsevierExternal DOI
Volume
40Page range
507-521Department affiliated with
- Business and Management Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2013-11-07First Open Access (FOA) Date
2013-11-07First Compliant Deposit (FCD) Date
2013-11-07Usage metrics
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