DOAJ (DOAJ: Directory of Open Access Journals) · 2012 · 30 citations · 7 references
BusinessEconomicsFinanceEconometricsFinancial EconomicsPortfolio ManagementFinancial RiskInvestmentInvestment TheoryMarket RiskPortfolio DiversificationRisk-return AnalysisInvestment Performance EvaluationInvestment Risk AssessmentProbit RegressionReturn-risk Trade-off AnalysisRisk-return Tradeoff AnalysisSafe Haven AdoptionSafe Haven Behavior
It is important to have a portfolio in investment to diversify the investment to different kinds of instruments. Based on previous research, it is concluded that gold is a good portfolio diversifier, a hedge against stock and safe haven in extreme stock market condition. As an investment instrument, stock is exposed to macroeconomic risks and global stock market risks. In this research, we conduct a comparison between the stock investment and gold investment by using the probit econometric model and data from 1997 to 2011. The final result obtained from the model shows that the gold investment is more advantageous than the stock investment.
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Is Gold a Hedge or a Safe Haven? An Analysis of Stocks, Bonds and Gold
Dirk G. Baur, Brian M. Lucey · Financial Review · 2010 · 2.3K citations
Jess H. Chua, Gordon Sick, Richard Woodward · Financial Analysts Journal · 1990 · 188 citations