Eco-Metals Unveiled: A Deep Dive into Commodity Resilience
Eco-Metals Unveiled: A Deep Dive into Commodity Resilience

Author(s): Mariana Chambino, Rui Dias, Paulo Alexandre, Rosa Galvão
Subject(s): Social Sciences
Published by: Udruženje ekonomista i menadžera Balkana
Keywords: Events of 2020 and 2022; Energy metals; Persistence; Arbitrage
Summary/Abstract: The drive for sustainability and carbon emissions reduction is fueling the demand for clean energy solutions, with energy metals playing a crucial role in this transition. The environmental and ethical implications of mining and supplying these materials impact market dynamics, influenced by environmental regulations and consumer preferences for sustainable sources. This article aims to analyze the persistence of commodities, including gold (XAU), silver (XAG), platinum (XPT), aluminum (MAL3), nickel futures (NICKELc1), and copper futures (HGU3), from July 13, 2018, to July 11, 2023. The study divides the sample into four sub-periods: tranquil, COVID-19 pandemic, pre-conflict, and conflict (Russian invasion of Ukraine). Results indicate varying behaviors, with some commodities showing anti-persistence, suggesting distinct patterns, while others exhibit efficiency or random walk behavior. Understanding these patterns and market efficiency is valuable for informed investment strategies and risk management amid evolving global economic conditions.

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