UQ Business School undergraduate student and research program participant, Lexie Yao completed an analysis of precious metals and diamond investments as part of the 2015 Summer Research Program.
In the wake of the global financial crisis, the project involved the investigation of safe haven and hedging properties of precious metals and diamond investments in the context of international stock markets.
“Investors are seeking alternative assets to improve the performance of their investment portfolios" Ms Yao said.
"Therefore, it is of interest for investors to evaluate the two different types of assets under market crisis conditions across multiple international stock markets.
“We found that precious metals, such as gold and rhodium were a greater hedge and safe haven compared to diamonds in Europe, the Americas, and Australia”.
The UQ Summer Research Program provides students with an opportunity to gain research experience working alongside some of the university’s leading academics and researchers.
By participating, students are able to extend their knowledge of an area of interest and develop analytical and critical thinking, and communication skills.
Ms Yao said the research program was a unique experience and it enhanced her written communication skills in an academic context.
“Being a commerce and IT student, it allowed me to practice my academic reading and writing skills" Ms Yao said.
I thought the program would be an excellent opportunity to apply my knowledge with algorithms and programming in a real-world context.
“My supervisor, Dr Rand Low, was a great help throughout the project and I’m extremely proud to be involved in a research project that has led to a successful academic publication in a toptier journal, the International Review of Financial Analysis”.
UQ Business School Postdoctoral Research Fellow, Dr Rand Low, said Lexis played a crucial role in this study, and exemplifies the practical aspects of UQ Business School research.
“Considering the volatility of global financial markets, there has been much interest from investment banks and fund managers in the commodities space and alternative investments, specifically in precious metals and gems" Dr Low said.
"It is important that UQ Business School researchers analyse the investment characteristics of these asset classes with academic rigour to ascertain if these assets do have safe haven and hedging characteristics”.
If you are interested in participating in either the Summer or Winter Research Programs, speak to the UQ Advantage Office.