Do precious metals act as hedges or safe havens for China's financial markets?
Finance Research Letters, 2020, vol. 37, issue C
This study examines the hedge and safe haven properties of precious metals on China's financial markets, including stock, bond, commodity futures (CF), and foreign exchange (FX) markets. Using the DCC-GARCH models, the study shows that precious metals are strong hedges for the bond market and diversifiers for other financial markets. Furthermore, precious metals can serve as safe haven in the event of market turmoil, but this safe haven feature may change with the markets’ volatility. Finally, the safe haven behaviors of precious metals differ during financial crisis.
Keywords: Financial markets; Hedge; Precious metals; Safe haven; Trade war (search for similar items in EconPapers)
JEL-codes: F10 G10 G11 G15 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:37:y:2020:i:c:s1544612318309462
Access Statistics for this article
Finance Research Letters is currently edited by R. GenÃ§ay
More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().