Cite JOURNAL ARTICLE
Speculative bubbles in precious metal markets — a suggestive model inspired by the 1986 platinum price development
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 111 (1991), Iss. 1 : pp. 83–90
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.