Precious Metal Derivatives - South Korea

South Korea

The nominal value in the Precious Metal Derivatives market is projected to reach €191.10bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.99% resulting in a projected total amount of €255.60bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to €0.06 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (€11,060.00bn in 2024).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 3.89m by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in South Korea is experiencing a notable shift in dynamics. Customer preferences in South Korea are increasingly leaning towards diversifying investment portfolios and hedging against market volatility, driving a growing interest in Precious Metal Derivatives as a financial instrument.

Trends in the market indicate a rising demand for gold and silver derivatives in South Korea, fueled by a combination of economic uncertainty, geopolitical tensions, and a desire for alternative investment options. Local special circumstances, such as a strong cultural affinity towards gold as a safe haven asset and a well-established financial market infrastructure, contribute to the development and expansion of the Precious Metal Derivatives market in South Korea. Underlying macroeconomic factors, including interest rates, inflation expectations, and global trade dynamics, play a significant role in shaping investor sentiment and driving the adoption of Precious Metal Derivatives in the South Korean 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.