Work

Hedging precious metals with impact investing

Year: 2023

Type: article

Abstract: Our study investigates the role of impact investing as a risk management tool for precious metals (i.e., palladium, platinum, gold, and silver) in calm and turbulent times. The findings show that impact investing and precious metals portfolios have higher hedging effectiveness. Furthermore, the results show that the hedging effectiveness for the portfolio of gold and impact investing increased during the COVID–19 crisis. Finally, we find that when factoring the transaction cost in portfolios of impact investing and precious metals, investors at various levels of risk aversion gain higher utility. These findings contribute to the literature and interest of investors, policymakers, fund managers, and regulators.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2023.07.047

Authors: Md Akhtaruzzaman, Ameet Kumar Banerjee, Van Le, Faten Moussa

Institutions: Australian Catholic University, Xavier School of Management, University of Newcastle Australia, Mediterranean School of Business, South Mediterranean University

Language: English

Topic: Sustainable Finance and Green Bonds

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,420

OpenAlex ID: W4385336715

FWCI: 7.181

Cites: 70

Cited by: 35

Related to: 10