The Financial Economics of White Precious Metals - A Survey

Abstract

This article provides a review of the academic literature on the financial economics of silver, platinum and palladium. The survey covers the findings on a wide variety of topics relation to the White Precious Metals including Market Efficiency, Forecastability, Behavioral Findings, Diversification Benefits, Volatility Drivers, Macroeconomic Determinants, and their relationships with other assets.

An analysis of the intellectual structure of research on the financial economics of precious metals

“…One recent comprehensive review on the literature published on gold is provided by O'Connor et al [2015] and thus, the literature review here on gold is kept short. For white precious metals, a thorough review is contained in Vigne et al [2017]. In summary, these papers summarize a large body of research, in a traditional literature survey approach.…”

“…Much as for gold so also has there been a widespread range of topics investigated. As noted in Vigne et al [2017] research on platinum and palladium, as investment assets, is scanter again. As we will see in the remainder of this paper, this focus on gold and on the investment elements is characteristic.…”

Rethinking Financial Contagion: Information Transmission Mechanism During the COVID-19 Pandemic.

“…Comprehensive literature survey papers are available in each of specific literature strands, with a large number of papers cited, for example seeEichengreen et al (1996) for comprehensive literature review of early papers on contagion,Gagnon and Karolyi (2006) for equities,Vigne et al (2017) for precious metals,Corbet et al (2018) for cryptocurrencies,Lucey et al (2018) for financial integration, to name but a few.Electronic copy available at: https://ssrn.com/abstract=3602973…”

Apply big data analytics for forecasting the prices of precious metals futures to construct a hedging strategy for industrial material procurement

“…The regression analysis results revealed that crude oil price, S&P 500, CPI, US 10‐year treasury rate, and industrial production have a significant effect on gold and silver. Vigne et al (2017) used macroeconomic variables such as S&P 500, S&P 500 dividend yield, World ex US, yield spread, World ex US dividend yield, US M 2 (the US Money supply), industrial production, inflation, US Dollar Index, consumer confidence, US 10‐year maturity bonds, and US 3‐month treasury yields to investigate the price fluctuations of gold, silver, platinum, and palladium. Moreover, the study addressed financial market sentiment.…”