Precious Metal Derivatives - Germany

Germany

The nominal value in the Precious Metal Derivatives market is projected to reach €3.63bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.11% resulting in a projected total amount of €3.65bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to €0.02 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€10,940.00bn in 2024).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 205.50k by 2029.

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Analyst Opinion

Germany has a long-standing tradition of being a key player in the global financial markets, including the Precious Metal Derivatives market.

Customer preferences: Investors in Germany show a strong inclination towards diversifying their portfolios through alternative investment options like Precious Metal Derivatives. This is driven by a desire to hedge against inflation and economic uncertainties, as well as to take advantage of potential price appreciation in the precious metals market.

Trends in the market: One noticeable trend in the Precious Metal Derivatives market in Germany is the increasing demand for silver derivatives. This trend is influenced by the growing industrial applications of silver, especially in the technology and renewable energy sectors. Additionally, there is a rising interest in environmentally sustainable investments, leading investors to consider silver as a green metal with potential long-term value.

Local special circumstances: Germany's strong manufacturing sector and its position as a leader in technological innovation contribute to the demand for precious metals like silver in industrial processes. This unique market dynamic creates a specific niche for silver derivatives in Germany, attracting both institutional and retail investors looking to capitalize on the country's industrial strength.

Underlying macroeconomic factors: The stability of the German economy, coupled with low-interest rates and a proactive regulatory environment, provides a favorable backdrop for the growth of the Precious Metal Derivatives market. Moreover, the country's focus on sustainable development and green technologies aligns with the increasing interest in environmentally friendly investments, further driving the demand for silver derivatives in the market.

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.