In recent years, as a result of an increasing ﬁnancialisation of ﬁnancial markets, white precious metals have slowly transformed from mere production inputs to in- vestment assets. In order to analyse the characteristics of white precious metals and the consequences of the transition, this paper examines the long-run inﬂation hedging eﬀectiveness of silver, platinum, and palladium using both linear and non-linear cointegration relationship procedures. This study is the ﬁrst to formally investigate the inﬂation hedging eﬀectiveness of white precious metals across diﬀerent countries. Overall, the results point towards the superiority of palladium as the most reliable inﬂation hedge. Furthermore, country-speciﬁc graphical evidence uncovers time-variation in the inﬂation hedging potential of white precious metals.
|Number of pages||16|
|Journal||Journal of International Financial Markets, Institutions and Money|
|Early online date||28 Mar 2018|
|Publication status||Published - Sep 2018|
Bilgin, M. H., Gogolin, F., Lau, C. K., & Vigne, S. A. (2018). Time-variation in the relationship between white precious metals and inflation: A cross-country analysis. Journal of International Financial Markets, Institutions and Money, 56, 55-70. https://doi.org/10.1016/j.intfin.2018.03.001