Do precious metals shine? An investment perspective

Hillier, D, Draper, P and Faff, R (2006) Do precious metals shine? An investment perspective. Financial Analysts Journal, 62 2: 98-106. doi:10.2469/faj.v62.n2.4085

Author Hillier, D
Draper, P
Faff, R
Title Do precious metals shine? An investment perspective
Journal name Financial Analysts Journal   Check publisher's open access policy
ISSN 0015-198X
Publication date 2006-03-01
Sub-type Article (original research)
DOI 10.2469/faj.v62.n2.4085
Open Access Status Not yet assessed
Volume 62
Issue 2
Start page 98
End page 106
Total pages 9
Place of publication Charlottesville, VA, United States
Publisher CFA Institute
Language eng
Abstract The investment role of precious metals in financial markets is investigated by analysis of daily data for gold, platinum, and silver from 1976 to 2004. All three precious metals have low correlations with stock index returns, which suggests that these metals may provide diversification within broad investment portfolios. Moreover, the data reveal that all three precious metals have some hedging capability, particularly during periods of "abnormal" stock market volatility. Financial portfolios that contain precious metals perform significantly better than standard equity portfolios. © 2006, CFA Institute.
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Unknown
Additional Notes Journal issue: March/April 2006

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
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Citation counts: TR Web of Science Citation Count  Cited 74 times in Thomson Reuters Web of Science Article | Citations
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Created: Mon, 07 Mar 2011, 21:06:07 EST by Karen Morgan on behalf of UQ Business School