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New Findings on Economic Modelling Described by Investigators at University of Salvador (Can gold hedge and preserve value when the US dollar...

July 4, 2014



New Findings on Economic Modelling Described by Investigators at University of Salvador (Can gold hedge and preserve value when the US dollar depreciates?)

By a News Reporter-Staff News Editor at Economics Week -- Researchers detail new data in Economic Modelling. According to news reporting out of Salvador, Brazil, by VerticalNews editors, research stated, "This paper examines gold's hedging and value-preserving properties against fluctuations in the US dollar."

Our news journalists obtained a quote from the research from the University of Salvador, "We propose a likelihood ratio test that draws a distinction between hedging and safe-haven characteristics on the basis of the conditional dependence structure under different market conditions. Our evidence, based on an analysis of data for US dollar exchange rates with a broad set of currencies, indicates that gold can serve as a hedge against US dollar depreciation but is a weak safe haven against extreme US dollar movements."

According to the news editors, the research concluded: "These results have implications for risk management and hedging strategies."

For more information on this research see: Can gold hedge and preserve value when the US dollar depreciates? Economic Modelling, 2014;39():168-173. Economic Modelling can be contacted at: Elsevier Science Bv, PO Box 211, 1000 Ae Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Economic Modelling - www.elsevier.com/wps/product/cws_home/30411)

Our news journalists report that additional information may be obtained by contacting J.C. Reboredo, Univ Salvador, Postgraduate Programme Management PPGA, BR-41770235 Salvador, BA, Brazil.

Keywords for this news article include: Brazil, Salvador, South America, Economic Modelling

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Economics Week


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