Silver in Equity Portfolio Risk Optimization: Polish Investor Perspective

Purpose: The study aims to verify whether silver can help reduce the risk of equity portfolio for a Polish investor without diminishing its return. What are optimal shares and in such portfolio, does it also improve skewness kurtosis return distribution compared with stock portfolio? Do change depend on situation market? Design/Methodology/Approach: author calculates descriptive statistics decide if former diversify assets latter. As equity, WIG20 Total Return index is used. Equity-silver optimization conducted light Markowitz theory. analysis done period between January 2005 April 2021. Findings: research shows that including an lets both decrease increase during bull market extended period, which take part growing trend. Conclusions do not when short sale allowed. It indicated bear markets 100% efficient Harry Simultaneously, suggests although diversification results understood as variance or standard deviation, created optimum portfolios various. Practical Implications: may be interesting institutional individual investors seeking different diversifying instruments various conditions. Originality/Value: contributes existing international literature by confirming asset indicates silver-equity conditions endangered USD/PLN currency rate risk.