The Role of Gold as Haven or Diversifier Invesment in Indonesia

Abstract

The objective of this study is to analyzes gold ownership in Indonesia related to the treatment of gold whether gold is used as a haven or diversifier investment. To determine gold as a haven or diversifier investment, the research method used is the general correlation method and cross correlation. The variables used in this study are gold price variables, investment interest rates, LQ 45, exchange rates and inflation, using data from 2018.1 to 2020.10. The results show that gold in Indonesia is more of a haven than a diversifier investment. Based on expectations of gold prices for the next year, it shows that the relationship between gold prices - interest rates and gold prices - exchange rates is a strong complementarity, while the relationship between gold prices and LQ45 is a very strong substitution or diversification.