Financial market risk and gold investment in an emerging market: the case of Turkey

This study aims to identify the opportunity cost of holding gold, in relation to the stock market for case of Turkey. The focus is to detect if gold acts as a safe haven or a hedge asset in times of distress. The Threshold GARCH (TARCH) model was utilized. The analysis used daily data for the peri...

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Main Authors: Bayram, Kamola, Abdullah, Adam, Meera, Ahamed Kameel Mydin
Format: Article
Language:English
Published: IIUM Press 2017
Subjects:
Online Access:http://irep.iium.edu.my/61090/
http://irep.iium.edu.my/61090/1/258-1-678-1-10-20171231.pdf
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author Bayram, Kamola
Abdullah, Adam
Meera, Ahamed Kameel Mydin
author_facet Bayram, Kamola
Abdullah, Adam
Meera, Ahamed Kameel Mydin
author_sort Bayram, Kamola
building IIUM Repository
collection Online Access
description This study aims to identify the opportunity cost of holding gold, in relation to the stock market for case of Turkey. The focus is to detect if gold acts as a safe haven or a hedge asset in times of distress. The Threshold GARCH (TARCH) model was utilized. The analysis used daily data for the period 2005-2014. The data for selling prices of gold was represented by selling prices derived from Precious Metals and Diamonds Markets (PMDM). The returns on Borsa Istanbul (BIS) was employed to represent aggregate prices of stock market investment. It was found that gold has safe haven asset features which shows that gold outperforms the average portfolio during times when stock market faces distress.
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spelling iium-610902018-02-02T01:28:14Z http://irep.iium.edu.my/61090/ Financial market risk and gold investment in an emerging market: the case of Turkey Bayram, Kamola Abdullah, Adam Meera, Ahamed Kameel Mydin HG3368 Islamic Banking and Finance This study aims to identify the opportunity cost of holding gold, in relation to the stock market for case of Turkey. The focus is to detect if gold acts as a safe haven or a hedge asset in times of distress. The Threshold GARCH (TARCH) model was utilized. The analysis used daily data for the period 2005-2014. The data for selling prices of gold was represented by selling prices derived from Precious Metals and Diamonds Markets (PMDM). The returns on Borsa Istanbul (BIS) was employed to represent aggregate prices of stock market investment. It was found that gold has safe haven asset features which shows that gold outperforms the average portfolio during times when stock market faces distress. IIUM Press 2017-12-31 Article PeerReviewed application/pdf en http://irep.iium.edu.my/61090/1/258-1-678-1-10-20171231.pdf Bayram, Kamola and Abdullah, Adam and Meera, Ahamed Kameel Mydin (2017) Financial market risk and gold investment in an emerging market: the case of Turkey. Journal of Islamic Finance, 6 (Special Issue). pp. 91-99. ISSN 2289-2109 E-ISSN 2289-2117 http://journals.iium.edu.my/iiibf-journal/index.php/jif/issue/view/16
spellingShingle HG3368 Islamic Banking and Finance
Bayram, Kamola
Abdullah, Adam
Meera, Ahamed Kameel Mydin
Financial market risk and gold investment in an emerging market: the case of Turkey
title Financial market risk and gold investment in an emerging market: the case of Turkey
title_full Financial market risk and gold investment in an emerging market: the case of Turkey
title_fullStr Financial market risk and gold investment in an emerging market: the case of Turkey
title_full_unstemmed Financial market risk and gold investment in an emerging market: the case of Turkey
title_short Financial market risk and gold investment in an emerging market: the case of Turkey
title_sort financial market risk and gold investment in an emerging market: the case of turkey
topic HG3368 Islamic Banking and Finance
url http://irep.iium.edu.my/61090/
http://irep.iium.edu.my/61090/
http://irep.iium.edu.my/61090/1/258-1-678-1-10-20171231.pdf