The role of gold in financial investment: a Malaysian perspective
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The paper assesses whether gold investment provides diversification, hedge, or safe haven benefit for the case of Malaysia using daily data from August 2001 to March 2010. The results indicate that at best gold serves as a diversification asset for Malaysian investors. In the analysis, we also find changing investment role of gold in recent years marked by global financial market uncertainties. The hedge and safe haven properties of gold investment documented in the initial sub-sample have been degraded to only diversification property. Moreover, the extreme market conditions tend to weaken the role of gold as a diversification asset in financial portfolio formation.
Financial investment , Gold , Diversification , Hedge , Safe haven
Ibrahim, M. H., & Abdul Hamid, B. (2011). The role of gold in financial investment: a Malaysian perspective. Economic Computation and Economic Cybernetics Studies and Research, 45(4), 227-238.
Academy of Economic Studies