Causality between metal prices: Is joint consumption a more important determinant than joint production of main and by-product metals?

Shammugam, Shivenes; Rathgeber, Andreas W.; Schlegl, Thomas

doi:10.1016/j.resourpol.2019.01.010

Cited by 18 publications

(3 citation statements)

References 65 publications

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“…In recent decades, gold and silver, the two most valued precious metals, have been recognized as important financial assets. According to the study, the widespread trading of these precious metals has greatly enhanced their liquidity, boosting their marketability (Frankel, 1987;Lutzenberger et al, 2017;Shammugam et al, 2019).…”

Section: Literature Reviewmentioning

confidence: 99%

Precious Metals and Oil Price Dynamics

Mohamed,

Mohamed

2023

IJEEP

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The aim of this study is to examine dynamic relationship among the prices of four precious metals (gold, silver, platinum, and palladium), oil price, and the US dollar/euro exchange rate. Recent literature for precious metals (gold, silver, platinum, palladium) and oil depict a lot contradiction results of their nexus in the long and short runs. So that, there is still much to investigate and learn about their relationship between them and with the exchange rate. The monthly data span from January 1990 to October 2021 is utilized, the study applies the co-integration analysis, multivariate Granger causality test and Variance Decomposition (VDC) analysis. The result shows the evidence of a long-run equilibrium relationship but weak feedbacks in the short run. The precious metal markets respond significantly (but temporarily) to a shock in any of the prices of the other metal prices and the exchange rate. Furthermore, we discover some evidence of market overreactions in the palladium and platinum cases as well as in the oil market. The study implies whether there are overreactions and re-adjustments or not, investors may diversify at least a portion of the risk away by investing in precious metals, oil, and the euro.

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Section: Literature Reviewmentioning

confidence: 99%

Precious Metals and Oil Price Dynamics

Mohamed,

Mohamed

2023

IJEEP

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“…There are many cases where more than two materials are required to produce one good. For example, cobalt, lithium, and nickel are the necessary materials to produce lithium-ion battery and are called joint consumption products (Shammugam et al, 2019). To analyze the shock of technology progress affecting the trade of joint consumption products, Shao et al (2022) constructed a cobalt-lithium trade network and simulated the structural changes under trade weight preference and trade country preference scenarios.…”

Section: Propagation Of Shocks In Single-layer Trade Networkmentioning

confidence: 99%

Supply chain risks of critical metals: Sources, propagation, and responses

Sun

2022

Front. Energy Res.

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In the era of globalization, industries of critical metals are organized through the global supply chain. However, the global supply chains have been disrupted since 2020 by the outbreak of COVID-19 and a series of geopolitical crises. To better address the supply chain challenges of critical metals, a review is needed about the sources, propagation, and responses of the supply chain risks. Firstly, this review provides an overview about the research progress in identifying the risk sources and assessing the risks and then proposes a new supply chain framework, categorizing relevant risk factors into upstream risks, middle-stream risks, downstream risks, and general risks, for risk analysis of critical metals. Secondly, this review offers a comprehensive understanding about how the risks propagate horizontally and vertically. Finally, responses such as supply diversification, stockpiling, material substitution, recycling and circular economy strategy, price volatility hedging, and supply chain traceability are reviewed. This survey features the supply chain perspective, overviews on network-based studies, and affirms the urgency and need for further studies on supply chain risks and resilience, which may contribute to a smooth clean energy transition.

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“…These literary sources are also very rich and diverse. These include, for example, modelling the supply of recycled material (copper) on historical consumption [3], analysing factors determining the level and dynamics of world copper prices by testing hypotheses on the dependence of fluctuations in the world copper market [4], a theoretical model of copper price cartel behaviour during the boom and recession [5], modelling GDP forecasts for various commodities including copper [6], modelling of the impact of financial and economic crises on copper mining companies' performance indicators [7], reviewing the dynamic transformational characteristics of the joint impact of gold and oil on long-term copper returns [8], forecasting copper production by 2035 in Chile on the basis of knowledge of potential mining projects, reserves and resources [9], determining the chaotic behaviour of copper prices over a long period using annual prices [10], analysis and quantification of how the mining industry in Chile affects other macroeconomic variables [11], modelling of the price and income elasticity of minerals [12], analysis of determinants of countries' competitiveness in attracting mining investment [13] and analysis of causality between metal prices [14].…”

Section: Introductionmentioning

confidence: 99%

The Influence of Economic Factors on World Copper Production

ČERNÝ¹,

Vaněk²,

KUBESA³

2022

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Miedź jest bardzo ważnym minerałem, który ma szerokie zastosowanie w przemyśle, zwłaszcza w elektrotechnice i energetyce. Wrazze wzrostem elektromobilności jej potencjał będzie rósł w przyszłości. Wszelki niedobór miedzi na rynku światowym mógłby zatemzagrozić nowoczesnemu przemysłowi. W związku z tym autorzy postanowili zająć się wpływem czynników ekonomicznych (cena,ludność, PKB i skumulowana inflacja) na produkcję miedzi oraz stworzyć odpowiednie modele ekonometryczne, wyrażające zależnośćmiędzy produkcją a czynnikami ekonomicznymi dla okresu 2010-2019. Wpływ czynników ekonomicznych na światowąprodukcję miedzi badany jest za pomocą współczynnika korelacji Pearsona. Stwierdzono, że produkcja miedzi jest odwrotnie proporcjonalnado ceny miedzi, jest to silna zależność. Natomiast korelacja między produkcją miedzi a innymi czynnikami jest bardzo silnai pozytywna. Korzystając z modelowania ekonometrycznego, odkryto, że regresja wykładnicza jest najlepszym wyrażeniem relacjimiędzy produkcją miedzi a jej ceną, a regresja logarytmiczna najbardziej odpowiada relacji między produkcją miedzi a wszystkimiinnymi czynnikami ekonomicznymi.

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Causality between metal prices: Is joint consumption a more important determinant than joint production of main and by-product metals?

Abstract: Causality between metal prices: Is joint consumption a more important determinant than joint production of main and by-product metals?

Cited by 18 publications

References 65 publications

Precious Metals and Oil Price Dynamics

Precious Metals and Oil Price Dynamics

Supply chain risks of critical metals: Sources, propagation, and responses

The Influence of Economic Factors on World Copper Production

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