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Mari Antonette Goyenechea Finman K32 11041412

GOLD PRICING: POPULAR FORECAST Goals are aleays present in every institution. As such, different organizations formualte their own objective functions, by considering the factors that which affect it. In the case of businesx establishments, especially those of corporations who goes by the principle "Profit is King", talk serious business when it comes to finance, and its high and lows. This is where the concept of financial forecasting comes in. Financial Forecasting is the process of estimating sales, cost, and profit or basically the performance of the business. It is defined by zenwealth.com as "Financial Forecasting describes the process by which firms think about and prepare for the future. The forecasting process provides the means for a firm to express its goals and priorities and to ensure that they are internally consistent. It also assists the firm in identifying the asset requirements and needs for external financing." (Zenwealth, 20022012). The are a lot of methods for forecasting: percent of sales method, discretionary financing need model. These models consists of a set of formulas that are needed to come up with a good forecast. From these methods one thing should could highlight the concept, and that is growth. For this is the forefront goal of every corporation. My paper would focus in the presentation of data or examples of financial forecasts of the global market and economies as a proof of the aid of financial forecasting to the capital structures of certain companies. I will be discussing three examples of the popular forecasts by the FFC namely the Euro Currency Exchange Rate Forecast, Crude Oil Price Forecast, and Gold Price Forecast. When we speak of gold, what comes to mind of an average condumers are those from where jewelries are made, the bars stored in huge vaults, but in a comprehensive manner, it is defined as, scientifically, " Symbol Au A soft, yellow, corrosion-resistant element, the most malleable and ductile metal, occurring in veins and alluvial deposits and recovered by mining or by panning or sluicing. A good thermal and electrical conductor, gold is generally alloyed to increase its strength, and it is used as an international monetary standard, in jewelry, for decoration, and as a plated coating on a wide variety of electrical and mechanical components. Atomic number 79; atomic weight 196.967; melting point 1,063.0°C; boiling point 2,966.0°C; specific gravity 19.32; valence 1, 3. See Table at element." (Free Dictionary, 2012). And in economic terms, " great wealth." (Free Dictionary, 2012).

It is also known as petroleum. The values are consistent in the bracket of 21 but isnt consistently decreasing or increasing either. meaning that it was made naturally from decaying plants and animals living in ancient seas millions of years ago -. it is ro note that in due circumstances. Crude oils vary in color. In this instance. gold could actually perform in certain kinds of crisis. if forecasted well. Crude oil is defined as "Crude oil is the term for "unprocessed" oil. The remedy for this foreseen situation would be disciplined deleveraging. Assuming the global financial crisis will continue to exist on the succeeding year. they stated the misdion that the organization stands for: . Below is the table of the prediction of FFC on the price of gold. In their website. from clear to tar-black. Another example would be the Crude Oil Pricing. One factor to consider and will be aforementioned is the OPEC which stands for Organization of Petroleum Exporting Countries.Why is the price of gold important? Simply because people invest in it fir its unique currency properties. and in viscosity. more specifically to use it a hedge. Hedging is important because it will serve as a safety net when there is devaluation of money in cases of inflation and deflation. One example that is applicable to gold pricing is e reduction of debts. This is very important for this very in demand ad a basic necessity by the human race. Crude oil is a fossil fuel. <insert image> The forecast runs from July 2012 up to january the following year. The defree of corectness with oercentagesof 50 and 80 percent have both values increasing after each month. in exeption." (How stuff works). despite the harms of goldpricing during crisis. the stuff that comes out of the ground. snd the differrent recommendations by the different sectors that are affected by gold.most places you can find crude oil were once sea beds. this will also be a major drivet for gold price . The given prices above are driven by the demand and supply basic laws. gold actually performs well during deflation. from water to almost solid.

it can affect the finances of the globsl market. OPEC also created their own forecast and they released a statement that the growth is expected to slow down at 0. (Reuters. and that involves the buying of products.3 to 91. That is why the forecasting models are very imprtant in the financial institutions for its helps assess future financial needs to be able to achieve the primary goal of maximazing profit. This lower expectation is due to the debt crisis that the European nations are currently facing. 2012). The data presented for Gold Pricing. The values forecasted range from 83. Below is FFC's forecast for cruide oil pricing. If we do not give attention to highs and lows. and Crude Oil Pricing are very important because these are the drivers in our economy."(OPEC. and its trends. this slowing down is also due to continuing global crisis. economic and regular supply of petroleum to consumers. Money circulates in the economies."In accordance with its Statute.4 USD/bbl not in consecutive matters. the mission of the Organization of the Petroleum Exporting Countries (OPEC) is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient. this forecast is useful for October-January forecast. Although there isnt huge significant differences of the value from the other given values. In present terms. There is also a starement that the forecast is less optimistic for global economic growth with values lowered to 6% in 2013. 2012). Inaddition to FFC's forecast. In connection to the first example. The lowest forecast would be recorded in November 2012. <insertimage> the data shows that the forecast is created for July 2012-January 2013. a steady income to producers and a fair return on capital for those investing in the petroleum industry. a minor change in these products and its pricing due to supply and demand reciprocates in effect with the other.8 million barrelsper day in they year 2013. .