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Investor Behavior in Gold, US Dollars and Cryptocurrency during Global Pandemics

Author

Listed:
  • Yoochan Kim

    (Western Australian School of Mines, Curtin University, Locked Bag 30, Kalgoorlie, WA 6433, Australia)

  • Erkan Topal

    (Western Australian School of Mines, Curtin University, Locked Bag 30, Kalgoorlie, WA 6433, Australia)

  • Apurna Kumar Ghosh

    (Western Australian School of Mines, Curtin University, Locked Bag 30, Kalgoorlie, WA 6433, Australia)

  • Mohammad Waqar Ali Asad

    (Western Australian School of Mines, Curtin University, Locked Bag 30, Kalgoorlie, WA 6433, Australia)

Abstract

COVID-19 and SARS are epidemics which have influenced the largest global economic crisis in recent years. This research reveals that both SARS and COVID-19 have led to fluctuations in the prices of gold and the US dollar index; however, there is no direct causal relationship be-tween COVID-19 and the price of bitcoin. The USD index saw a significant increase during the SARS outbreak, while gold prices surged during the COVID-19 pandemic. The notion that cryptocurrency will surpass the value of gold or traditional currencies seems improbable, given the lack of evidence linking bitcoin prices to COVID-19. Gold is expected to maintain its value in the long term, offering lower risk compared to other currencies.

Suggested Citation

  • Yoochan Kim & Erkan Topal & Apurna Kumar Ghosh & Mohammad Waqar Ali Asad, 2024. "Investor Behavior in Gold, US Dollars and Cryptocurrency during Global Pandemics," Economies, MDPI, vol. 12(3), pages 1-15, March.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:3:p:64-:d:1352421
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    References listed on IDEAS

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