Trinity College Dublin

Skip to main content.

Top Level TCD Links

Hedges and Safe Havens – An examination of Stocks, Bonds, Oil, Gold and the Dollar

Cetin Ciner
Constantin Gurdgiev
Brian M Lucey
Corresponding Author: Brian M Lucey, School of Business and Institute for International Integration Studies, University of Dublin, Trinity College, Dublin 2, Ireland  & Caledonian Business School, Glasgow Caledonian University, Cowcaddens Road, Glasgow, G4 0BA, Scotland, UK Email: 
Cetin Ciner, Cameron School of Business, University of North Carolina, Wilmington, NC 601 S. College Road, Wilmington NC 28403,
Constantin Gurdgiev, School of Business, University of Dublin, Trinity College, Dublin 2, Ireland and IBM Global Center for Economic Development, Ballsbridge, Dublin 4, Ireland Email:  

IIIS Discussion Paper No. 337


We investigate five major financial asset classes, examining how and under what circumstances each may act as a hedge or a safe haven to each other. Using the approach of Baur and Lucey (2010) and Baur and McDermott (2010) we find that gold acts as a safe haven for most assets, except oil. Bonds do not appear to be a longterm hedge against equity price movements but do act as a safe haven for equities.  We examine this in the case of the UK and the USA, both major gold and oil trading centers, over a twenty year period.


Keywords : DCC Garch, Gold
JEL Categories: C52, G12




Last updated 28 August 2014 by IIIS (Email).