TY - JOUR
T1 - Precious metals as hedge and safe haven for African stock markets
AU - Naeem, Muhammad Abubakr
AU - Chowdhury, Md Iftekhar Hasan
AU - Agyemang, Abraham
AU - Hasan, Mudassar
AU - Shahzad, Syed Jawad Hussain
PY - 2022/9/1
Y1 - 2022/9/1
N2 - This study investigates the diversification properties of precious metals for African stock markets. We report that gold offers the strongest safe haven and hedging potential for African equity markets. Our quantile-coherency analysis indicates a low safe haven ability of precious metals in the long-run. Palladium provides both safe haven and hedge opportunities in the short-term, while Platinum holds only its hedging potential in the same spectrum. The GFC period provides important revelations; gold joins platinum as a safe haven with silver as a hedge. Our results suggest dynamic diversification opportunities for investors in African equity markets using precious metals more so in the short-term.
AB - This study investigates the diversification properties of precious metals for African stock markets. We report that gold offers the strongest safe haven and hedging potential for African equity markets. Our quantile-coherency analysis indicates a low safe haven ability of precious metals in the long-run. Palladium provides both safe haven and hedge opportunities in the short-term, while Platinum holds only its hedging potential in the same spectrum. The GFC period provides important revelations; gold joins platinum as a safe haven with silver as a hedge. Our results suggest dynamic diversification opportunities for investors in African equity markets using precious metals more so in the short-term.
U2 - 10.1016/j.resourpol.2022.102781
DO - 10.1016/j.resourpol.2022.102781
M3 - Article
SN - 0301-4207
VL - 78
JO - Resources Policy
JF - Resources Policy
M1 - 102781
ER -