Do precious and industrial metals act as hedges and safe havens for currency portfolios?

Ryuta Sakemoto

Research output: Contribution to journalArticle

5 Citations (Scopus)
17 Downloads (Pure)

Abstract

This study explores whether metals act as hedges and safe havens for currency investing portfolios. Three widely used currency investment strategies: carry, momentum and value are adopted. The empirical results argue that gold and silver do exhibit hedge and safe haven properties for all three strategies. Silver works as a strong hedge during extreme market conditions. However, these hedge and safe haven properties became weaker after the year 2000. We also find that industrial metals do not work as either hedges or safe havens for carry portfolios.

Original languageEnglish
JournalFinance Research Letters
Early online date23 Sep 2017
DOIs
Publication statusE-pub ahead of print - 23 Sep 2017

Keywords

  • Carry trade
  • Currency
  • Hedge
  • Metals
  • Safe haven

ASJC Scopus subject areas

  • Finance

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