Precious Metal Derivatives - Southern Europe

Southern Europe

The nominal value in the Precious Metal Derivatives market is projected to reach €513.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.21% resulting in a projected total amount of €601.60bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to €0.01 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 68.62m by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Southern Europe has been experiencing a notable surge in trading activities and product offerings. Customer preferences in the Southern European region have been shifting towards more diverse and sophisticated investment options.

Investors are increasingly looking for alternative ways to hedge against market volatility and diversify their portfolios, leading to a growing demand for Precious Metal Derivatives. Trends in the market show a rising interest in gold and silver derivatives, driven by their historical safe-haven status during economic uncertainties. Traders are also exploring innovative derivative products linked to other precious metals, such as platinum and palladium, to capitalize on their unique market dynamics.

Local special circumstances, such as the rich history of gold craftsmanship in countries like Italy and Greece, contribute to the cultural affinity towards precious metals. This cultural connection further fuels the demand for Precious Metal Derivatives as investors seek to participate in the market while honoring traditional values. Underlying macroeconomic factors, including low interest rates and inflation concerns in the Eurozone, have propelled investors towards Precious Metal Derivatives as a means of preserving capital and generating returns in a low-yield environment.

The ongoing geopolitical uncertainties in the region also drive investors to seek refuge in precious metals, boosting the derivatives 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.