A Banking and Finance lecturer at the Women's University in Africa.
researching, networking and sharing ideas, attending research conferences, workshops and seminars, professional development
We investigate the association between gold prices and equities on the Zimbabwe Stock Exchange
We sought to investigate the association between gold prices and equities on the Zimbabwe Stock Exchange (ZSE). Correlation analysis, regression analysis, and granger causality tests were conducted to determine the nature and direction of the relationship. We found a weak short-run unidirectional relationship between gold prices and stocks of gold mining firms on the ZSE. However, we observed no association between gold prices and shares of nongold mining firms on the bourse. We concluded that gold can be best used for diversification purposes when held as a commodity than when investors buy shares of gold mining companies.