Are gold bugs coherent?

ABSTRACT

We use wavelet models to surface the relationship between gold miners stock prices and the price of gold. We find that there is little relationship in the short run but some significant and long-standing long-run relationships. Gold prices appear to lead gold miner stock prices.

KEYWORDS:

• Gold mining
• gold miners
• substitution

JEL CLASSIFICATION:

• C14
• G12
• G14

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

¹ Data on the stock exchanges is from the World Federation of Stock Exchanges, and the currency data is based on BIS data.