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Gold shares or gold bullion—which is the better investment?
Author(s) -
Barr G. D. I.,
AffleckGraves J. F.
Publication year - 1985
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090060408
Subject(s) - bullion , economics , portfolio , investment (military) , gold as an investment , monetary economics , financial economics , political science , archaeology , politics , law , history
This paper examines, from the standpoint of the US investor, the illative merits of an investment in gold bullion vis‐à‐vis South African gold shares. Markowitz portfolio‐selection techniques are used to examine the relative performance of gold bullion and SA gold shares quoted on the New York stock exchange over the period 1978 to 1983. It concludes that, on average, of the period examined gold shares have proved to be significantly better investments than gold bullion and considers possible reasons for this.