Precious Metal Derivatives - Switzerland

Switzerland

The nominal value in the Precious Metal Derivatives market is projected to reach €99.98bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.50% resulting in a projected total amount of €102.50bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to €0.09 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 1,401.00k by 2029.

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Analyst Opinion

Switzerland, known for its strong banking system and stability, has a thriving Precious Metal Derivatives market.

Customer preferences: Investors in Switzerland show a strong inclination towards Precious Metal Derivatives as a way to diversify their portfolios and hedge against economic uncertainties. The country's reputation for financial security makes it a preferred destination for investors looking to safeguard their wealth.

Trends in the market: One notable trend in the Swiss Precious Metal Derivatives market is the increasing demand for innovative derivative products that offer exposure to a wider range of precious metals. Investors are seeking more sophisticated instruments to manage risk and capitalize on market opportunities. This trend is driving the development of new derivative products tailored to the specific needs of Swiss investors.

Local special circumstances: Switzerland's position as a global financial hub plays a significant role in the development of its Precious Metal Derivatives market. The country's strict regulatory framework and reputation for financial stability attract investors looking for a secure environment to trade derivatives. Additionally, the presence of major global financial institutions in Switzerland contributes to the market's depth and liquidity.

Underlying macroeconomic factors: The Swiss economy's resilience and the country's status as a safe haven for investors during times of market volatility contribute to the growth of the Precious Metal Derivatives market. Economic stability, low inflation, and a strong currency make Switzerland an attractive destination for investors seeking exposure to precious metals through derivatives. Moreover, the country's well-established infrastructure and expertise in financial services further support the development of 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.