[go: up one dir, main page]

  EconPapers    
Economics at your fingertips  
 

Are gold and silver a hedge against inflation? A two century perspective

Georgios Bampinas and Theodore Panagiotidis

International Review of Financial Analysis, 2015, vol. 41, issue C, 267-276

Abstract: This study examines the long-run hedging ability of gold and silver prices against alternative measures of consumer price index for the UK and the US. We employ a dataset that spans from 1791 to 2010, and both a time-invariant and a time-varying cointegration framework. We find that gold can at least fully hedge headline, expected and core CPI in the long-run. This ability tends to be stronger when we allow for the long term dynamics to vary over time. The inflation hedging ability of gold is on average higher in the US compared to the UK. Silver does not hedge US consumer prices albeit evidence emerges in favor of a time-varying long-run relationship in the UK.

Keywords: Gold prices; Silver prices; Inflation hedge; Time-varying cointegration (search for similar items in EconPapers)
JEL-codes: C22 C32 C58 G15 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (87)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S105752191500037X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Are Gold and Silver a Hedge against Inflation? A Two Century Perspective (2015) Downloads
Working Paper: Are Gold and Silver a Hedge against Inflation? A Two Century Perspective (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:41:y:2015:i:c:p:267-276

DOI: 10.1016/j.irfa.2015.02.007

Access Statistics for this article

International Review of Financial Analysis is currently edited by B.M. Lucey

More articles in International Review of Financial Analysis from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2024-12-03
Handle: RePEc:eee:finana:v:41:y:2015:i:c:p:267-276