IZA DP No. 16012: Precious Metal Prices: A Tale of Four U.S. Recessions
Pablo Agnese, Pedro Garcia-del-Barrio, Luis A. Gil-Alana, Fernando Perez de Gracia
published in: Studies in Economics and Finance, 21 March 2024
This paper empirically examines the degree of persistence in four precious metal prices (i.e., gold, palladium, platinum, and silver) during the last four U.S. recessions. Unit root tests and fractional integration techniques suggest that gold still is the most prominent safe haven asset within this particular asset class. Our analysis highlights gold's traditional role as a hedge against market uncertainty in post-pandemic new era, thus retaining its status quo as a store of value during economic contractions.
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