Development of Russian precious metals sales planning under the conditions of macroeconomic and geopolitical instability
- Authors: Stepanov I.A.1
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Affiliations:
- National Research Nuclear University MEPhI (Moscow Engineering Physics Institute)
- Issue: Vol 23, No 2 (2023)
- Pages: 174-179
- Section: Articles
- URL: https://bakhtiniada.ru/1994-2540/article/view/252068
- DOI: https://doi.org/10.18500/1994-2540-2023-23-2-174-179
- EDN: https://elibrary.ru/MDSXFS
- ID: 252068
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Abstract
Introduction. Under the influence of external limitations, Russian precious metals market faced new threats and challenges. Metallurgical companies have been forced to re-engineer aff ected business processes. One of the main tasks is to reassess their approach to sales planning. Theoretical analysis. High market volatility triggered by increased macroeconomic and geopolitical risks causes price bubbles. Bubbles have a negative impact on the market because they produce serious deviations from fundamental levels. There is a defi nite connection between negative news and bubbles growth. Empirical analysis. Precious metal prices showed high volatility in 2022. The analysis revealed at least one palladium price bubble formed during March. In the face of increased uncertainty, the main sales objective was to sell as much of the production as possible, which most metallurgical companies have coped with. Results. In order to develop sales planning under constraints, a combined approach is proposed that gives minimal deviations from average prices and reduces bubble probability. It is worth using econometric models for the early identifi cation of price deviations from its fundamentals. It is necessary to encourage the regional trading hubs of precious metals.
Keywords
About the authors
Ilya Alekseevich Stepanov
National Research Nuclear University MEPhI (Moscow Engineering Physics Institute)31 Kashirskoe shosse, Moscow 115409, Russia
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