Email this article 
Hide
Show all
The Price of Gold as a Determinant of Prices of Gold Mining Stocks
Abstract
The goal of the article is to assess the exposure of gold mine stock prices to changes of its price between 1997 and 2016, using the gold price leverage as a measure expressed with the gold Beta. To implement this goal, an exponential model was constructed, and descriptive analysis was also used. Studies have shown that in the whole period analyzed the gold price leverage effect did not occur except in 3 companies. However, after the analyzed period was divided into subperiods (bull and bear gold market), the leverage effect was reported except for 5 companies during the bull market period. Therefore, the length of the analyzed period significantly impacts the obtained results. They are crucial to investors choosing between physical gold regarded as safer in the long run, and mining stocks, in which case they expect not only the leverage effect but also other benefits.
Keywords
Full Text:
PDF (Język Polski)References
Bandulet B., Das geheime Wissen der Goldanleger, Kopp Verlag, Rottenburg 2010.
Baur D.G., Gold mining companies and the price of gold, “Review of Financial Economics” 2014, Vol. 23, DOI: https://doi.org/10.1016/j.rfe.2014.07.001.
Blose L.E., Shieh J.C.P., The impact of gold price on the value of gold mining stocks, “Review of Financial Economics” 1995, Vol. 4, DOI: https://doi.org/10.1016/1058-3300(95)90002-0.
Coleman L., The price gold shareholders place on market risks, “Applied Financial Economics” 2010, Vol. 20, DOI: https://doi.org/10.1080/09603101003636196.
Gold Survey, Thomson Reuters GFMS, London 2015.
Gold Survey, Thomson Reuters GFMS, London 2016.
Mamcarz K., Akcje kopalni złota jako instrument inwestowania kapitału, „Annales UMCS. Sectio H” 2014, nr 1, DOI: http://dx.doi.org/10.17951/h.2014.48.1.139.
Morgan D., Insiderwissen: Silber. Investieren Sie in die Zukunft, FinanzBuch Verlag, München 2007.
Schodde R.C., Key issues affecting the time delay between discovery and development – Is it getting harder and longer?, Presentation to the PDAC, Toronto, March 2014a, www.minexconsulting.com/publications/mar 2014.html [dostęp: 22.05.2015].
Schodde R.C., Gold exploration... a balancing act, article for a special supplement on the Gold industry, Mining Journal, August 2014b, www.minexconsulting.com/publications/aug2014.html [dostęp: 22.05.2015].
Schodde R.C., The Global Shift to Undercover Exploration - How fast? How effective?, Keynote paper for the Society of Economic Geologists 2014 Conference, Keystone Colorado September 2014c, www.minexconsulting.com/publications/sep2014b.html [dostęp: 31.12.2015].
Schwarze N., Investieren in Gold, FinanzBuch Verlag, München 2010.
Tufano P., The determinants of stock price exposure: Financial engineering and the gold mining industry, “Journal of Finance” 1998, Vol. 53, DOI: https://doi.org/10.1111/0022-1082.00042.
Twite G., Gold prices, exchange rates, gold stocks and the gold premium, “Australian Journal of Management” 2002, Vol. 27, DOI: https://doi.org/10.1177/031289620202700202.
World Gold Council, www.gold.org/research/download-the-gold-price-since-1978 [dostęp: 28.01.2017].
Yahoo finance, http://finance.yahoo.com/q/hp?s=^HUI+Historical+Prices [dostęp: 28.01.2017].
DOI: http://dx.doi.org/10.17951/h.2017.51.4.225
Date of publication: 2017-12-08 15:26:43
Date of submission: 2017-04-21 12:10:29
Statistics
Indicators
Refbacks
- There are currently no refbacks.
Copyright (c) 2017 Katarzyna Mamcarz
This work is licensed under a Creative Commons Attribution 4.0 International License.