Geopolitical risk and precious metals
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We empirically examine the impact of Geopolitical Risk (GPR) ontradable precious metal returns for a period spanning over January1985 to December 2017. We report the evidence of: (a) increase in GPRof 100 units increases Gold returns by 0.0029 percent. (b) For a 100 unitincrease in GPR the returns of Silver, Platinum and Palladium falls by-0.0008, -0.0057 and -0.0343 percent respectively. (c) Gold returns arehigher (and positive) under threat conditions rather than actualoccurrence of any risk events. (d) Palladium is found to be mostvulnerable to GPR and (e) we also find positive and significantsensitivity of Gold at normal market conditions.
Abstract
We empirically examine the impact of Geopolitical Risk (GPR) ontradable precious metal returns for a period spanning over January1985 to December 2017. We report the evidence of: (a) increase in GPRof 100 units increases Gold returns by 0.0029 percent. (b) For a 100 unitincrease in GPR the returns of Silver, Platinum and Palladium falls by-0.0008, -0.0057 and -0.0343 percent respectively. (c) Gold returns arehigher (and positive) under threat conditions rather than actualoccurrence of any risk events. (d) Palladium is found to be mostvulnerable to GPR and (e) we also find positive and significantsensitivity of Gold at normal market conditions.
참고문헌 (26)
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