Industry Metal Derivatives - Switzerland

Switzerland

The nominal value in the Industry Metal Derivatives market is projected to reach €341.90bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.78% resulting in a projected total amount of €411.60bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to €0.89 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (€2,629.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 413.20k by 2029.

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Región

Comparación de regiones

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Analyst Opinion

The Industry Metal Derivatives market in Switzerland is experiencing a notable shift in customer preferences towards more diversified investment options. Customers are increasingly seeking exposure to a wider range of metal derivatives to enhance their investment portfolios and manage risks more effectively.

This trend is driven by a growing interest in alternative investments and a desire for greater flexibility in hedging strategies. In response to these changing preferences, the market in Switzerland is witnessing a significant increase in the trading volume of metal derivatives tied to rare metals and alloys. This shift reflects a global trend towards the exploration of non-traditional commodities in the derivatives market.

Investors are looking beyond traditional metals like gold and silver to capitalize on the potential returns offered by unique and specialized metal derivatives. Moreover, there is a growing demand for customized metal derivative products tailored to specific industrial needs in Switzerland. This customization trend is driven by the country's strong manufacturing sector, which relies heavily on metal inputs for production.

As a result, market participants are increasingly turning to bespoke metal derivatives to hedge against price fluctuations and secure a stable supply of raw materials. Local special circumstances in Switzerland, such as the country's reputation for financial stability and innovation, are also influencing the development of the metal derivatives market. Swiss financial institutions are at the forefront of designing sophisticated metal derivative products that cater to the unique needs of both domestic and international investors.

This expertise has positioned Switzerland as a key player in the global metal derivatives market, attracting a diverse range of market participants seeking cutting-edge financial instruments. Underlying macroeconomic factors, including global trade dynamics and geopolitical developments, are further shaping the metal derivatives market in Switzerland. As the country continues to navigate economic uncertainties and market volatility, investors are increasingly turning to metal derivatives as a safe haven asset to protect their wealth and diversify their portfolios.

This strategic shift underscores the importance of metal derivatives in the broader context of Switzerland's financial landscape.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.