Risk–Return Dynamics of Non-Gold Metal Investments: A Comparative Analysis of Silver, Platinum, Palladium, Copper, and Lithium Using 10-Year Market Data

International Journal of Emerging Research in Science, Engineering, and Management
Vol. 1, Issue 5, pp. 25-38, November 2025.

https://doi.org/10.58482/ijersem.v1i5.5

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Risk–Return Dynamics of Non-Gold Metal Investments: A Comparative Analysis of Silver, Platinum, Palladium, Copper, and Lithium Using 10-Year Market Data

Sreenivasulu Sunkara

Harish N

V Lakshmi Suneetha

Assistant Professor, Department of Management Studies, The Oxford College of Engineering, Bangalore, India

Abstract: The volatility of global metal markets has increased substantially over the past decade, prompting investors to seek alternatives to Gold for portfolio diversification, hedging, and long-term return stability. This study examines the risk–return characteristics of five non-gold metals—silver, platinum, palladium, copper, and lithium—using 10 years of monthly historical price data. Key performance indicators, including average returns, standard deviation, downside deviation, Value-at-Risk (VaR), and correlation with major market indices, are analyzed to evaluate each metal’s investment potential. The results show that silver and palladium exhibit high return potential but also elevated volatility, while platinum demonstrates favorable hedging characteristics during economic stress periods. Copper exhibits strong linkage to industrial cycles, with moderate risk and steady long-term performance. Lithium exhibits rapid price expansion driven by technological and battery-market demand, but with significant volatility and supply uncertainty. The findings highlight that no single metal dominates across all investment dimensions; instead, each metal offers unique risk–return features suited to different investor strategies. This study provides a comprehensive comparative assessment for investors exploring non-gold metals as part of diversified portfolios.

Keywords: Non-Gold Metals, Silver, Platinum, Palladium, Copper, Lithium, Risk–Return Analysis, Value-at-Risk, Volatility, Portfolio Diversification.

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This article is part of Volume 1, Issue 5 (November 2025)