Green Gold - A Gold Mining Perspective

57 Pages Posted: 17 Jan 2020

See all articles by Dirk G. Baur

Dirk G. Baur

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

Allan Trench

The University of Western Australia

Sam Ulrich

The University of Western Australia

Date Written: December 1, 2019

Abstract

Gold is a long-lasting, durable and thus sustainable metal and asset. However, mining for gold often adversely affects the environment. This study proposes an alternative to mitigate these negative externalities and costs of gold mining. Instead of digging out gold for investment purposes we propose to leave it in the ground and let nature act as a natural vault and custodian legally protected by gold firms and the government. Empirically, we analyse whether portfolios of gold exploration companies with access to such "green" gold also provide exposure to the world price of gold. The results demonstrate that gold mining is not necessary to give investors access to gold.

Keywords: gold, sustainable, mining, exploration, environmental, ESG

JEL Classification: G11, Q02, Q51, Q53

Suggested Citation

Baur, Dirk G. and Trench, Allan and Ulrich, Sam, Green Gold - A Gold Mining Perspective (December 1, 2019). Available at SSRN: https://ssrn.com/abstract=3512681 or http://dx.doi.org/10.2139/ssrn.3512681

Dirk G. Baur (Contact Author)

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

Allan Trench

The University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
Australia

Sam Ulrich

The University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
Australia

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