Investor Behavior in Gold, US Dollars and Cryptocurrency during Global Pandemics

Yoochan Kim (), Erkan Topal, Apurna Kumar Ghosh and Mohammad Waqar Ali Asad
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Yoochan Kim: Western Australian School of Mines, Curtin University, Locked Bag 30, Kalgoorlie, WA 6433, Australia
Erkan Topal: Western Australian School of Mines, Curtin University, Locked Bag 30, Kalgoorlie, WA 6433, Australia
Apurna Kumar Ghosh: Western Australian School of Mines, Curtin University, Locked Bag 30, Kalgoorlie, WA 6433, Australia
Mohammad Waqar Ali Asad: Western Australian School of Mines, Curtin University, Locked Bag 30, Kalgoorlie, WA 6433, Australia

Economies, 2024, vol. 12, issue 3, 1-15

Abstract: COVID-19 and SARS are epidemics which have influenced the largest global economic crisis in recent years. This research reveals that both SARS and COVID-19 have led to fluctuations in the prices of gold and the US dollar index; however, there is no direct causal relationship be-tween COVID-19 and the price of bitcoin. The USD index saw a significant increase during the SARS outbreak, while gold prices surged during the COVID-19 pandemic. The notion that cryptocurrency will surpass the value of gold or traditional currencies seems improbable, given the lack of evidence linking bitcoin prices to COVID-19. Gold is expected to maintain its value in the long term, offering lower risk compared to other currencies.

Keywords: gold price; COVID-19; US dollars; bitcoin price; Granger causality; Johansen co-integration; vector error correction model (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2024
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