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Googling gold and mining bad news

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  • Baur, Dirk G.
  • Dimpfl, Thomas

Abstract

This paper studies investor's attention to gold price movements by analyzing the relationship between gold price changes and internet search queries for gold. We find a positive relationship of gold price volatility and search queries and a strong asymmetric effect of negative gold price changes on search queries indicating a preference to mine (google) bad news rather than good news. The analysis of silver, palladium and platinum demonstrates that the findings for gold are unique.

Suggested Citation

  • Baur, Dirk G. & Dimpfl, Thomas, 2016. "Googling gold and mining bad news," Resources Policy, Elsevier, vol. 50(C), pages 306-311.
    • Handle: RePEc:eee:jrpoli:v:50:y:2016:i:c:p:306-311
    DOI: 10.1016/j.resourpol.2016.10.013
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    More about this item

    Keywords

    Gold; Volatility; Investor attention; Investor behavior; Search queries;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market

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