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Speculative bubbles in precious metal markets — a suggestive model inspired by the 1986 platinum price development

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Schimmelpfennig, J. Speculative bubbles in precious metal markets — a suggestive model inspired by the 1986 platinum price development. Journal of Contextual Economics – Schmollers Jahrbuch, 111(1), 83-90. https://doi.org/10.3790/schm.111.1.83
Schimmelpfennig, Jörg "Speculative bubbles in precious metal markets — a suggestive model inspired by the 1986 platinum price development" Journal of Contextual Economics – Schmollers Jahrbuch 111.1, 1991, 83-90. https://doi.org/10.3790/schm.111.1.83
Schimmelpfennig, Jörg (1991): Speculative bubbles in precious metal markets — a suggestive model inspired by the 1986 platinum price development, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 111, iss. 1, 83-90, [online] https://doi.org/10.3790/schm.111.1.83

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Speculative bubbles in precious metal markets — a suggestive model inspired by the 1986 platinum price development

Schimmelpfennig, Jörg

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 111 (1991), Iss. 1 : pp. 83–90

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Schimmelpfennig, Jörg

Abstract

Allowing for stochastic martingale solutions within rational expectations models implies temporary rises and falls in prices without any change in market fundamentals. This is combined with a special feature of the New York Mercantile Exchange precious metal futures, the upper limit for daily price changes, to give an illustrative view of the rather irregular and seemingly irrational platinum price movements in the third quarter of 1986.