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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
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    References listed on IDEAS

    as
    1. Demidova-Menzel, Nadeshda & Heidorn, Thomas, 2007. "Gold in the investment portfolio," Frankfurt School - Working Paper Series 87, Frankfurt School of Finance and Management.
    2. Robert Novy-Marx, 2014. "Understanding Defensive Equity," NBER Working Papers 20591, National Bureau of Economic Research, Inc.
    3. 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.
    Full references (including those not matched with items on IDEAS)

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    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

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