Investment opportunities - Gold & other precious metals

Marek Jakoubek

Master's thesis

Abstract:

This thesis is focused on the comparison of gold and other precious metals from an investment point of view. At first, gold, silver, platinum and palladium will be introduced individually and some general information about each metal will be presented. Then, I will be looking into the metals’ price development and comparing one another to observe their behaviour in time. There will also be a chapter about the alternatives to investing into precious metals and stocks. One of the main goals of this thesis will be to show how the prices of metals react in times of economic growth as well as during crises. To accomplish that, I will be analysing the relation between metals and stocks, specifically the famous S&P 500 stock index, and I will be measuring the results based on various criteria. Lastly, I will calculate and present how an optimal portfolio would look like during different periods, based on my findings.

Abstract:

This thesis is focused on the comparison of gold and other precious metals from an investment point of view. At first, gold, silver, platinum and palladium will be introduced individually and some general information about each metal will be presented. Then, I will be looking into the metals’ price development and comparing one another to observe their behaviour in time. There will also be a chapter about the alternatives to investing into precious metals and stocks. One of the main goals of this thesis will be to show how the prices of metals react in times of economic growth as well as during crises. To accomplish that, I will be analysing the relation between metals and stocks, specifically the famous S&P 500 stock index, and I will be measuring the results based on various criteria. Lastly, I will calculate and present how an optimal portfolio would look like during different periods, based on my findings.

Keywords

silver, platinum, gold, palladium, precious metals, stocks, investing, market, standard deviation, correlation, commodities, optimal portfolio

Keywords

gold, silver, investing, standard deviation, platinum, palladium, precious metals, market, correlation, commodities, stocks, optimal portfolio

Language used: English

Date on which the thesis was submitted / produced: 13. 11. 2017

Thesis defence

• Date of defence: 14. 6. 2018
• Supervisor: Karel Brůna
• Reader: Ondřej Šíma

Vysoká škola ekonomická v Praze

Master programme:
Finance and Accounting