Financial Analysis of High-Value Commodities Portfolio: Gold and Silver
Matiushin, Dmitrii (2019)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-201904235720
https://urn.fi/URN:NBN:fi:amk-201904235720
Tiivistelmä
Throughout centuries the financial world generated numerous opportunities for profitable investments and capital allocation. Long-term financial decisions were made from the perspective of future gains. However, owing to its complexities and uncertainties, the financial world cannot be explained with a few ex-ante theoretical concepts. In times of economic crises, investors not only started searching for the new financial assets but also re-considered investing in relatively traditional assets.
The key objective of the thesis was to analyze the performance of gold and silver, which are considered as high-value commodities, in terms of portfolio risks and returns. Several global indexes were chosen as a benchmark comparison. The market indicators were: DIJA, S&P500, and FTSE. The monetary history of the metals was one of the research pillars. Market performance of gold and silver was examined via the most fundamental factors that affect the price volatility and trend development.
A quantitative approach was adopted in order to collect the financial data from several stock market databases. It was used for calculating beta, standard deviation and annualized returns within several timeframes. The results were compared and analyzed.
The results underlined the importance of high value commodities in times of uncertainty and financial instabilities in terms of risk and return performance. Within the correction cycle in the financial world, gold and silver stocks were favored by investors and successfully generated positive returns regardless of high volatility.
The key objective of the thesis was to analyze the performance of gold and silver, which are considered as high-value commodities, in terms of portfolio risks and returns. Several global indexes were chosen as a benchmark comparison. The market indicators were: DIJA, S&P500, and FTSE. The monetary history of the metals was one of the research pillars. Market performance of gold and silver was examined via the most fundamental factors that affect the price volatility and trend development.
A quantitative approach was adopted in order to collect the financial data from several stock market databases. It was used for calculating beta, standard deviation and annualized returns within several timeframes. The results were compared and analyzed.
The results underlined the importance of high value commodities in times of uncertainty and financial instabilities in terms of risk and return performance. Within the correction cycle in the financial world, gold and silver stocks were favored by investors and successfully generated positive returns regardless of high volatility.