Author(s): Surendran Pillay
An exploratory study was conducted to investigate the relationship between the real platinum price and natural gas over 60 years in order to determine the nexus between both commodities. Both commodities have grown in economic importance over the last 50 years, both as investment and speculative assets. The study employed the GARCH and EGARCH models in determining the relationship between platinum and natural gas. The results of the testing revealed that a 10% increase in the natural gas price returns leads to a 0.17% increase in the platinum price. Furthermore, the overall volatility of platinum and natural gas price from January 1960 to October 2020 was increased.