The Financial Economics of White Precious Metals - A Survey Brian M. Luceya, Fergal A. O'Connorb, Samuel A. Vignec, Larisa Yarovayad aTrinity Business School, Trinity College Dublin, Dublin 2, Ireland email:
[email protected] bThe York Management School, University of York, YO10 5GD, England email:
[email protected] cQueen's Management School, Queen's University Belfast, BT9 5EE, Northern Ireland, United Kingdom and Trinity Business School, Trinity College Dublin, Dublin 2, Ireland email:
[email protected] (corresponding author) dLord Ashcroft Business School, Anglia Ruskin University, CM1 1SQ, United Kingdom email:
[email protected] Abstract Stuff Keywords: Silver, Platinum, Palladium, Survey, Review JEL Code E44; F33; G15; L72; Q31 Contents Page 1 Introduction 3 2 A Very Brief History of Gold, Silver and Money 4 3 About the Role of Silver in a Bimetallic System 12 4 Structural Issues around White Precious Metals 14 4.1 The Pricing Structure of Silver, Platinum and Palladium . 14 4.2 Econometric Issues around the Pricing Patterns of White Pre- cious Metals . 17 5 Behavioural Aspects of White Precious Metals 19 5.1 Market Efficiency . 19 5.2 Seasonality and Trading Behaviour of Investors . 21 5.3 Silver Price Forecasts . 26 6 The Investment Benefits of White Precious Metals 27 6.1 Adding White Precious Metals into a Portfolio . 27 6.2 Debt and Equity Hedging Abilities of White Precious Metals 31 6.3 White Precious Metals and Inflation . 35 6.4 Exchange-Rate Hedging . 38 7 Volatility Issues around White Precious Metals 38 8 Research About Exchange Traded Products on White Pre- cious Metals 54 9 The Macroeconomic Determinants of White Precious Metal Prices 56 10 The Relationship between White Precious Metals and Other Commodities 62 10.1 About the Relationship between Gold and Silver .