Did Precious Metals Serve as Hedge and Safe-haven Alternatives to Equity During the COVID-19 Pandemic: New Insights Using a Copula-based Approach

Ameet Kumar Banerjee and Pradhan Hk

Journal of Emerging Market Finance, 2024, vol. 23, issue 4, 399-423

Abstract: We examine the hedging and safe-haven characteristics of gold, silver, platinum, and palladium and three major indices in the US market. The metal markets are known for their hedging characteristics during financial distress. This article sheds new insights using high-frequency data into precious metals’ hedging and safe-haven abilities under extreme market volatility conditions attributed to the COVID-19 crisis using the copula method. The results show that gold outperforms all other precious metals in hedging and as a safe haven under extreme stock market conditions, in both the pre-crisis and crisis periods, with silver as the next best alternative. JEL codes: G01, G11, G15, G19

Keywords: Precious metal; COVID-19 crisis; copula approach; safe haven (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/09726527241251515 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:emffin:v:23:y:2024:i:4:p:399-423

DOI: 10.1177/09726527241251515

Access Statistics for this article

More articles in Journal of Emerging Market Finance from Institute for Financial Management and Research
Bibliographic data for series maintained by SAGE Publications ().