“Which precious metal commodities have the highest spreads on equity indices? Which precious metals add the most/least risk to my portfolio? Which precious metals are most desirable to invest in? These are closely related questions. which we wanted to explore in this study,” said Dr. Seong-min Eun from Pusan, speaking about his motivation behind the study.
The research found that when portfolios were optimized using a differential valuation method, the largest spillovers occurred between gold and silver, and between zinc and lead, while the world’s largest spillovers occurred in the Americas, Europe and Asia. Pacific Equity indices are on Palladium. Copper
Nickel and lead add the most risk to the overall portfolio risk, while platinum, gold and aluminum add the least risk to a commodities portfolio. Meanwhile, gold and aluminum were found to be the most desirable metals for investment.