Evaluation of gold as an investment asset: the South African context

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dc.contributor.author Pule, Barrend Pule
dc.date.accessioned 2013-07-26T08:42:20Z
dc.date.available 2013-07-26T08:42:20Z
dc.date.issued 2013-07-26
dc.identifier.uri http://hdl.handle.net/10539/12911
dc.description Thesis (M.M. (Finance & Investment))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration, 2013. en_ZA
dc.description.abstract This study examines potential benefits of investing in various gold investment vehicles in terms of risk and return from a typical South African investor’s perspective. Furthermore, the study examines the relationship between gold price and South African macroeconomic variables. Data used in the study comprises of monthly closing share price data of JSE listed gold mining companies, gold price, Krugerrand coin, NewGold ETF, FTSE/JSE all share index, gold mining index, unit trust index (gold & precious metals), real GDP, rand/dollar exchange rate, repo rate and CPI. It was found that gold bullion produced superior abnormal returns and yielded greater capital growth compared to the JSE all share index. However, the JSE all share index exhibit lower volatility compared to gold bullion. Abnormal returns for JSE listed gold mining companies tend to differ substantially from gold bullion abnormal returns. Gold mining companies exhibit added risk which cannot be attributed to the gold bullion. Gold has a potential to reduce systematic risk when added to a portfolio of stocks. A multiple regression model was estimated which relates gold price to South African macroeconomic variables. It was found that gold price depends on real GDP and rand/dollar exchange rate. en_ZA
dc.language.iso en en_ZA
dc.subject Gold en_ZA
dc.subject Investment en_ZA
dc.subject South Africa en_ZA
dc.subject Johannesburg Stock Exchange en_ZA
dc.subject JSE en_ZA
dc.subject Risk en_ZA
dc.title Evaluation of gold as an investment asset: the South African context en_ZA
dc.type Thesis en_ZA


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