Causal links between gold and silver prices of Indian commodity market
Kirithiga S, Naresh G
Indian commodity market is one of the emerging markets in the world. With the globalization and advances in technology the commodity trading has become feasible for market participants. The recent policy changes paved way for investors to play in the commodity market and that lead the commodities to emerge as an asset class and get shares in their portfolio. The market efficiency is one of the important feature that gives confidence for the investors to trade in any market. This also fits to the Indian commodity market. The precious metals such as Gold and Silver which has an emotional bonding with the Indians are now emerging more as an investment than a ritual. This study has investigated the efficiency of Indian Gold and Silver markets through the use of time series econometrics methodologies. The markets for Gold and Silver included in the study are efficient in long run as well as in short-run. Thus, the Gold and Silver has inter linkage between their markets which keeps these markets efficient and allows the investor to trade confidently.