IDEAS home Printed from https://ideas.repec.org/a/ris/utmsje/0328.html
   My bibliography  Save this article

Strategic Approach To Investment Portfolios Through The Prism Of Precious Metals

Author

Listed:
  • Marinac, Martina

    (Faculty of Tourism and Hospitality Management Opatija, University of Rijeka, Croatia.)

  • Vukoja, Marija

    (Faculty of Tourism and Hospitality Management Opatija, University of Rijeka, Croatia.)

Abstract

Within finance, there is an area of investment based on the role in investment opportunities that are expected to increase in value in the short or long term, further to this, will also increase a profit for the investor. Depending on preferences, risk propensity and available trading facilities, investors make decisions about the components of their own investment portfolios. The general premise on the basis of which investors decide is to make as much profit as possible, and at the lowest possible rate of risk. In order to meet this unwritten rule, investors must focus their investments on more investment options, which is diversify of the investment portfolio; what is also what modern portfolio theory, or Markowitz's theory, is about. In this way, the risk is allocated to several smaller segments or investment options and potentially achieves a higher return on investment than would be realized if all available funds were directed to one investment object. Diversification, in practice, serves as an effective investment tool that provides the investor a protection against risk, but it is also a tool to achieve the basic goal of investment, or profit for which the investor stands.

Suggested Citation

  • Marinac, Martina & Vukoja, Marija, 2022. "Strategic Approach To Investment Portfolios Through The Prism Of Precious Metals," UTMS Journal of Economics, University of Tourism and Management, Skopje, Macedonia, vol. 13(1), pages 98-128.
    • Handle: RePEc:ris:utmsje:0328
    as

    Download full text from publisher

    File URL: https://utmsjoe.mk/files/Vol.13.No.1/8.STRATEGIC-APPROACH-TO-INVESTMENT-PORTFOLIOS-THROUGH-THE-PRISM-OF-PRECIOUS-METALS.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ksenzhuk, Oleksandr, 2018. "Determinant Of The Development Of The Precious Metals Market And Peculiarities Of Investments In Precious Metals," EUREKA: Social and Humanities, Scientific Route OÜ, issue 4, pages 10-16.
    2. Demidova-Menzel, Nadeshda & Heidorn, Thomas, 2007. "Gold in the investment portfolio," Frankfurt School - Working Paper Series 87, Frankfurt School of Finance and Management.
    3. Robert Novy-Marx, 2014. "Understanding Defensive Equity," NBER Working Papers 20591, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dietmar Harhoff & Elisabeth Mueller & John Van Reenen, 2014. "What are the Channels for Technology Sourcing? Panel Data Evidence from German Companies," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 23(1), pages 204-224, March.
    2. Herrmann-Pillath, Carsten, 2010. "Rethinking evolution, entropy and economics: A triadic conceptual framework for the maximum entropy principle as applied to the growth of knowledge," Frankfurt School - Working Paper Series 146, Frankfurt School of Finance and Management.
    3. Hübsch, Arnd & Walther, Ursula, 2012. "The impact of network inhomogeneities on contagion and system stability," CPQF Working Paper Series 32, Frankfurt School of Finance and Management, Centre for Practical Quantitative Finance (CPQF).
    4. Behley, Dustin & Leyer, Michael, 2011. "Evaluating concepts for short-term control in financial service processes," Frankfurt School - Working Paper Series 183, Frankfurt School of Finance and Management.
    5. Andriani, Pierpaolo & Herrmann-Pillath, Carsten, 2011. "Transactional innovation and the de-commoditization of the Brazilian coffee trade," Frankfurt School - Working Paper Series 162, Frankfurt School of Finance and Management.
    6. Mai, Nhat Chi, 2013. "Determinants of the gold price in Vietnam," OSF Preprints pv8dz, Center for Open Science.
    7. , Le Thi Son & Chi, Trinh Thuy & Anh, Nguyen Thi Nguyet, 2013. "Determinants of the gold price in Vietnam," OSF Preprints 85dqp, Center for Open Science.
    8. Löchel, Horst & Li, Helena Xiang, 2011. "Understanding the high profitability of Chinese banks," Frankfurt School - Working Paper Series 177, Frankfurt School of Finance and Management.
    9. Herrmann-Pillath, Carsten, 2010. "Meaning and function in the theory of consumer choice: dual selves in evolving networks," Frankfurt School - Working Paper Series 153, Frankfurt School of Finance and Management.
    10. Moradia, Abha & Mehta, Ashish C., 2018. "Analyzing gold returns: Indian perspective," MPRA Paper 92989, University Library of Munich, Germany.
    11. Herrmann-Pillath Carsten, 2014. "Naturalizing Institutions: Evolutionary Principles and Application on the Case of Money," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 234(2-3), pages 388-421, April.
    12. Roßbach, Peter & Karlow, Denis, 2011. "The stability of traditional measures of index tracking quality," Frankfurt School - Working Paper Series 164, Frankfurt School of Finance and Management.
    13. Radoslaw Kurach, 2012. "Stocks, Commodities And Business Cycle Fluctuations – Seeking The Diversification Benefits," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 7(4), pages 101-116, December.
    14. Klein, Michael, 2012. "Infrastructure policy: Basic design options," Frankfurt School - Working Paper Series 185, Frankfurt School of Finance and Management.
    15. C. Herrmann-Pillath, 2011. "A Neurolinguistic Approach to Performativity in Economics," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 2.
    16. Packham, Natalie & Schmidt, Wolfgang M., 2008. "Latin hypercube sampling with dependence and applications in finance," CPQF Working Paper Series 15, Frankfurt School of Finance and Management, Centre for Practical Quantitative Finance (CPQF).
    17. Beyna, Ingo & Wystup, Uwe, 2010. "On the calibration of the Cheyette interest rate model," CPQF Working Paper Series 25, Frankfurt School of Finance and Management, Centre for Practical Quantitative Finance (CPQF).
    18. Umber, Marc P. & Grote, Michael H. & Frey, Rainer, 2010. "Europe integrates less than you think: Evidence from the market for corporate control in Europe and the US," Frankfurt School - Working Paper Series 150, Frankfurt School of Finance and Management.
    19. Rajnish Mehra & Sunil Wahal & Daruo Xie, 2021. "Is idiosyncratic risk conditionally priced?," Quantitative Economics, Econometric Society, vol. 12(2), pages 625-646, May.
    20. Susanne Griebsch & Uwe Wystup, 2011. "On the valuation of fader and discrete barrier options in Heston's stochastic volatility model," Quantitative Finance, Taylor & Francis Journals, vol. 11(5), pages 693-709.

    More about this item

    Keywords

    investment; portfolio; precious metals; diversification; modern portfolio theory;
    All these keywords.

    JEL classification:

    • F01 - International Economics - - General - - - Global Outlook
    • Z32 - Other Special Topics - - Tourism Economics - - - Tourism and Development

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:utmsje:0328. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Assistant Professor. Dejan Nakovski, PhD (email available below). General contact details of provider: https://edirc.repec.org/data/feutmmk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.