International Journal of Business and Economics Volume 23, No. 2 September, 2024

Precious Metals as a Safe Haven for Crude Oil: Focusing on the Impact of the COVID-19 Pandemic

Chung Baek

Professor of Finance, Troy University, U.S.A.

Abstract

We investigate the impact of the COVID-19 pandemic on precious metals as a safe haven for crude oil. Unlike recent studies that focus on the initial impact of the pandemic, our study compares the safe haven properties of precious metals across the pre- and post-pandemic periods. Also, we extend the post-pandemic sample period to capture the lingering effect of the pandemic as well as its initial impact. We find the asymmetric impact of the pandemic on precious metals as a safe haven for oil. Since the recent market crash caused by the pandemic is intrinsically different from the previous ones triggered by structural vulnerability or defects in financial markets, our study is expected to provide a new insight to policymakers as well as professional investors.

Keywords：COVID-19 Pandemic; Safe Haven; Crude Oil; Precious Metals

JEL Classifications：G01, G10

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