Risk Diversification of Retirement Assets in the Case of Platinum
Risk Diversification of Retirement Assets in the Case of Platinum

Author(s): Izabela Pruchnicka-Grabias
Subject(s): Business Economy / Management, Financial Markets
Published by: Sveučilište Josipa Jurja Strossmayera u Osijeku, Ekonomski fakultet u Osijeku
Keywords: platinum; precious metals; risk;
Summary/Abstract: Aging requires thinking about saving money for the time when people do not work anymore. However, it is a challenge nowadays because of high inflation and a dynamic global economic situation. It is not reasonable to keep all money as cash for the retirement period, and one should think about different forms of investments. In order to diversify risk, it is necessary not only to use traditional investments like stocks or bonds, but also to get acquainted with alternative ones. Typical assets like stocks or bonds can be partially replaced in the portfolio by some types of alternative investments like, for example, precious metals. It is most often gold, which is treated in scientific papers as a risk diversifier, so platinum is studied in this chapter. The research aims to analyze the investment features of platinum. The author tries to answer the question whether platinum can be a risk diversifier for stock investments. Statistics for this unique metal are checked and compared with those for stocks. The hypothesis is that platinum can be applied in risk management for stock portfolios helping to achieve a better relation of risk-return.

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