Silver and Global Equity Markets

With the prices of Gold touching a new acme on a daily basis, a research has been conducted to article the trend of returns generated by gold. This trend was then compared with that of the S&P 500 and Dow Jones Precious metal index which included Gold, Silver and Platinum and their performances was evaluated thereafter. For the purpose of evaluation four moments i.e. mean (first moment), variance or standard deviation (second), skewness (third), and kurtosis (fourth) were examined for the entire data set, and thereafter the Yearly as well as overall ten Yearly Sharpe and Treynor ratios of all three indexes were compared. The results implied that gold has performed better than the Dow Jones precious metal index and S&P 500 over the past ten years.