Comparative Analysis of Precious Metals and Oil Prices as Inputs to Growth

Abstract

This study investigates the long and short-term relationships between economic growth and the prices of precious metals, which are inputs for fossil and renewable energy sources. Increased demand for precious metals, which are heavily used in the storage of electrical energy, will raise prices and reduce demand for fossil fuels, thereby causing a decline in fossil fuel prices. To this end, the long- and short-term relationship between the monthly industrial production index for the period 2012-2025, oil prices, and the energy transition metal index was investigated using the Engle-Granger method. As a result, both oil prices and the energy transition metal index were found to be related to the industrial production index in both the long and short term, but the energy transition metal index was found to be more influential than oil prices in both the long and short term. This result indicates that dependence on fossil fuels is decreasing, but that this dependence will not end in the short term.