IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

Determinants of the physical demand for gold: Evidence from panel data

Listed author(s):
  • Martha Starr

    ()

    (Department of Economics, American University)

  • Ky Tran

Although the role of gold in the world economy has declined since the gold standard was abandoned, it remains important as a central bank reserve, a hedge against risks, a barometer of geopolitical uncertainty, and an input for jewelry. While portfolio demand for gold has been well studied, determinants of physical demand are less understood. Certain emerging-market countries like China and India import substantial amounts of gold, with several factors that may contribute: low financial development, need for precautionary savings, and/or strong cultural valuation of gold itself. This paper uses panel data on gold imports of 21 countries to examine determinants of physical demand. We find that determinants of physical demand differ from those of portfolio demand, and that they differ between the developed and developing worlds.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://w.american.edu/cas/economics/repec/amu/workingpapers/2007-09.pdf
File Function: First version, 2007
Download Restriction: no

Paper provided by American University, Department of Economics in its series Working Papers with number 2007-09.

as
in new window

Length: 25 pages
Date of creation: Jul 2007
Handle: RePEc:amu:wpaper:0907
Contact details of provider: Web page: http://www.american.edu/cas/economics/

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:amu:wpaper:0907. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Meal)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.