EconPapers    
Economics at your fingertips  
 

Investment potential and risk hedging characteristics of platinum group metals

James Ross McCown and Ron Shaw

The Quarterly Review of Economics and Finance, 2017, vol. 63, issue C, 328-337

Abstract: We examine the investment potential and risk-hedging characteristics of platinum, palladium, and rhodium by analyzing returns on their spot prices and comparing them with gold, crude oil, and stocks. The three characteristics that we examine that may be of the most importance to investors are the correlation with inflation, the correlation with foreign exchange rates, and the systematic risk of the investments. We find platinum is useful as a hedge against all three factors, and is also useful as a safe haven in periods of extreme stock market declines. Palladium and rhodium do not show the same extensive hedging capabilities.

Keywords: Platinum; Palladium; Precious metals; Investments (search for similar items in EconPapers)
JEL-codes: G11 G12 (search for similar items in EconPapers)
Date: 2017
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)
http://www.sciencedirect.com/science/article/pii/S1062976916300291
Full text for ScienceDirect subscribers only

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:eee:quaeco:v:63:y:2017:i:c:p:328-337

Access Statistics for this article

The Quarterly Review of Economics and Finance is currently edited by R. J. Arnould and J. E. Finnerty

More articles in The Quarterly Review of Economics and Finance from Elsevier
Series data maintained by Dana Niculescu ().

 
Page updated 2017-12-23
Handle: RePEc:eee:quaeco:v:63:y:2017:i:c:p:328-337