TITLE

IS GOLD A HEDGE OR A SAFE HAVEN? AN EMPIRICAL EVIDENCE OF GOLD AND STOCKS IN MALAYSIA

AUTHOR(S)
Ghazali, Mohd Fahmi; Hooi-Hooi Lean; Bahari, Zakaria
PUB. DATE
December 2013
SOURCE
International Journal of Business & Society;Dec2013, Vol. 14 Issue 3, p428
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This study investigates the role of gold in Malaysia for the period of July 2001 - February 2013. Specifically, we examine whether gold can be used as a hedge on average or a safe haven during financial turmoil. The noteworthy finding of our study is that gold plays an important role as a hedge, but its characteristic is short-lived. On one hand, we find little evidence that gold is a safe haven in some thresholds. On the other hand, gold at best is a weak safe haven for stockholders during financial stress. These results indicate that gold plays a minor role in emerging market like Malaysia during stock market slump. Therefore, holding a well-diversified portfolio could help in providing reasonable return and protection from economic collapse.
ACCESSION #
95257575

 

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