Googling Gold and Mining Bad News

17 Pages Posted: 8 Jan 2016 Last revised: 28 Jul 2016

See all articles by Dirk G. Baur

Dirk G. Baur

University of Western Australia - Business School; Financial Research Network (FIRN)

Thomas Dimpfl

University of Tuebingen - Department of Statistics and Econometrics

Date Written: January 7, 2016

Abstract

This paper studies investor's attention to gold price movements by analyzing the relationship between gold price changes and internet search queries for gold. We find a positive relationship of gold price volatility and search queries and a strong asymmetric effect of negative gold price changes on search queries indicating a preference to mine (google) bad news rather than good news. The analysis of silver, palladium and platinum demonstrates that the findings for gold are unique.

Keywords: gold, volatility, investor attention, google, search queries

JEL Classification: G02, G11, Q02

Suggested Citation

Baur, Dirk G. and Dimpfl, Thomas, Googling Gold and Mining Bad News (January 7, 2016). Available at SSRN: https://ssrn.com/abstract=2712224 or http://dx.doi.org/10.2139/ssrn.2712224

Dirk G. Baur

University of Western Australia - Business School ( email )

School of Business
35 Stirling Highway
Crawley, Western Australia 6009
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Thomas Dimpfl (Contact Author)

University of Tuebingen - Department of Statistics and Econometrics ( email )

Germany

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