The Effect On Precious Mine Markets On Terrorism News: Borsa İstanbul A.Ş. An Application On Precious Mining Market

Abstract

Uncertainty not only affects individuals but also markets in a negative way. The incidences of terrorism are among the factors that increase uncertainty. The increase of uncertainty also increases the volatility of the market and motivates the investors for safer investment instruments. In the atmosphere of uncertainty, instead of risky investment instruments like long term bonds, investors may prefer to invest in instruments like precious metals that they view as more secure. For that reason, the demand for the precious metals like gold and silver may increase especially in uncertainty. In this paper, to be able to depict the effect of news on terrorism on the market of precious metals, the relation between the metal prices recorded in precious metal market of Istanbul Stock Exchange and 441296 news on terrorism compiled from world media via big data method has been scrutinized in the light of Granger Causality method. As a conclusion regarding the given date range it has been found out that there is no causality effect of news on terrorism on the prices of precious metals.