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The Price Volatility of Precious Metals in Times of Economic and Geopolitical Crisis

Author

Listed:
  • Viorel Mionel
  • Oana Mionel
  • Alexandra Moraru

Abstract

People perceive gold, silver and platinum as jewellery and massive ingots, but their rarity and physicochemical properties recommend them as being suitable for a wide range of uses. The value of gold has led many states to diversify their economic portfolio by creating sovereign reserves. By buying massive amounts of gold, countries like China, Russia, India, Brazil and Turkey suggest that the purchase of precious metals is the best investment during the crisis. Research results show that the value of precious metals greatly increases at times of crisis because buying precious metals indemnifies states against international currency devaluation.

Suggested Citation

  • Viorel Mionel & Oana Mionel & Alexandra Moraru, 2017. "The Price Volatility of Precious Metals in Times of Economic and Geopolitical Crisis," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 3(3), pages 87-91, September.
    • Handle: RePEc:khe:scajes:v:3:y:2017:i:3:p:87-91
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    References listed on IDEAS

    as
    1. Philip I. Levy, 1999. "Sanctions on South Africa: What Did They Do?," American Economic Review, American Economic Association, vol. 89(2), pages 415-420, May.
    2. Viorel Mionel & Oana Mionel & Alexandra Moraru, 2015. "Sovereign Gold Reserves. Geopolitics or economic calculation?," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 7(2), pages 85-90, June.
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    More about this item

    Keywords

    Gold; silver; platinum; economic crises; geopolitics;
    All these keywords.

    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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