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Price Drivers and Investment Strategies of Gold

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  • Arayssi, Mahmoud

Abstract

The price determinants of gold are explained in this paper. Benefits from holding gold as an investment class asset in several forms, including ETFs are explored. Disadvantages of holding various gold investments are described, particularly in Contango markets. The gold prices are examined in the past two decades, focusing on the relationship with the S&P 500 and Dow index and various currencies, producer and consumer indices. We conclude with advice to potential individual investors in gold and an overview of some variables that affect the future trend of gold.

Suggested Citation

  • Arayssi, Mahmoud, 2013. "Price Drivers and Investment Strategies of Gold," MPRA Paper 56115, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56115
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    References listed on IDEAS

    as
    1. Jeffrey A. Frankel, 2008. "The Effect of Monetary Policy on Real Commodity Prices," NBER Chapters, in: Asset Prices and Monetary Policy, pages 291-333, National Bureau of Economic Research, Inc.
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    4. Campbell, John Y. (ed.), 2008. "Asset Prices and Monetary Policy," National Bureau of Economic Research Books, University of Chicago Press, number 9780226092119, December.
    5. Jun Cai & Yan‐Leung Cheung & Michael C. S. Wong, 2001. "What moves the gold market?," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 21(3), pages 257-278, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    gold price; investment strategy;

    JEL classification:

    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation

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