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Research in Applied Economics ISSN 1948-5433 2009, Vol. 1, No. 1: E12

The Dynamics of Gold Prices, Gold Mining comport Prices and Stock Market Prices Comovements
Claire G. Gilmore Department of Accounting and Finance, Kings College Wilkes-Barre, dada 18711, United States Tel: 570-208-5900 E-mail: clairegilmore@kings.edu

Ginette M. McManus (Corresponding author) Department of Finance, angel Josephs University 5600 urban center Avenue, Philadelphia, Pennsylvania 19131, United States Tel: 610-660-1632 E-mail: gmcmanus@sju.edu

Rajneesh Sharma Department of Finance, Saint Josephs University 5600 City Avenue, Philadelphia, Pennsylvania 19131, United States Tel: 610-660-1115 E-mail: rsharma@sju.edu

Ahmet Tezel Department of Finance, Saint Josephs University 5600 City Avenue, Philadelphia, Pennsylvania 19131, United States Tel: 610-660-1570 Abstract We try the dynamic relationships amid atomic number 79 prices, stock price indices of specie minelaying companies and broad stock food market indices. Evidence of cointegration among these variables is found. A vector error-correction model reveals that both capital and large-capitalisationitalisation stock prices adjust to disturbances to restore the long-term relationship between the variables.



Short-term unidirectional causal relationships are running from large-cap stock prices to gold mining company stock prices and from gold mining company stock prices to gold prices. Keywords: Gold mining company stock prices, Cointegration, Vector error-correction model
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E-mail: atezel@sju.edu

Research in Applied Economics ISSN 1948-5433 2009, Vol. 1, No. 1: E12

1. Introduction The returns of gold-related securities, much(prenominal) as common stock in gold mining companies, are widely considered to be related to changes in gold prices and, to a much lesser extent, to general stock market returns. A number of studies have examined the relationship between gold prices and gold mining company returns, including Blose and Shieh (1995),...If you want to get a full essay, order it on our website: Ordercustompaper.com



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