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Where was the global price of silver established? Evidence from London and New York (1878–1953)

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  • Corbet, Shaen
  • O’Connor, Fergal

Abstract

This paper utilises a newly compiled, unique data set of silver prices for the London and New York markets, as well as the monthly Dollar-Sterling exchange rate from 1878 and 1953 to investigate the source and flows of information and price discovery. Results indicate that London was the dominant market and pricing leader of silver throughout the period analysed. Further evidence suggests that there existed dynamic information flows both within years and decades. These phenomena can be explained due to the use of silver for agricultural market payments and international silver production flows respectively.

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  • Corbet, Shaen & O’Connor, Fergal, 2021. "Where was the global price of silver established? Evidence from London and New York (1878–1953)," Finance Research Letters, Elsevier, vol. 39(C).
    • Handle: RePEc:eee:finlet:v:39:y:2021:i:c:s1544612320303780
    DOI: 10.1016/j.frl.2020.101626
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    References listed on IDEAS

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    Cited by:

    1. Erman Arif & Dodi Devianto & Mutia Yollanda & Afrimayani Afrimayani, 2022. "Analysis of Precious Metal Price Movements Using Long Memory Model and Fuzzy Time Series Markov Chain," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 202-214, November.
    2. Rana, Hafiz Muhammad Usman & O'Connor, Fergal, 2023. "Domestic macroeconomic determinants of precious metals prices in developed and emerging economies: An international analysis of the long and short run," International Review of Financial Analysis, Elsevier, vol. 89(C).
    3. Corbet, Shaen & Hou, Yang (Greg) & Hu, Yang & Oxley, Les, 2022. "The growth of oil futures in China: Evidence of market maturity through global crises," Energy Economics, Elsevier, vol. 114(C).

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