Precious metals as hedge and safe haven for African stock markets

Muhammad Abubakr Naeem, Abraham Agyemang, Md Iftekhar Hasan Chowdhury, Mudassar Hasan, Syed Jawad Hussain Shahzad

Research output: Contribution to journalArticlepeer-review

15 Citations (Scopus)

Abstract

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.

Original languageEnglish
Article number102781
JournalResources Policy
Volume78
DOIs
Publication statusPublished - Sept 2022

Keywords

  • African stock markets
  • Hedge effectiveness
  • Precious metals
  • Quantile coherency

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics and Econometrics
  • Management, Monitoring, Policy and Law
  • Law

Fingerprint

Dive into the research topics of 'Precious metals as hedge and safe haven for African stock markets'. Together they form a unique fingerprint.

Cite this