Precious Metal Derivatives - United Kingdom

United Kingdom

The nominal value in the Precious Metal Derivatives market is projected to reach €89.77bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.87% resulting in a projected total amount of €103.40bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to €0.00 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 74.38m by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in United Kingdom is experiencing a notable shift in dynamics. Customer preferences in the United Kingdom for Precious Metal Derivatives are influenced by the global trend towards alternative investments.

Investors are increasingly diversifying their portfolios to include commodities such as gold, silver, and platinum derivatives as a hedge against inflation and market volatility. Trends in the market show a growing interest in environmentally sustainable investments, leading to a rise in demand for green precious metal derivatives in the United Kingdom. This trend aligns with the global movement towards responsible investing and ESG considerations, driving the development of new financial products in the market.

Local special circumstances in the United Kingdom, such as the country's strong financial services sector and status as a global financial hub, contribute to the growth of the Precious Metal Derivatives market. The presence of sophisticated investors, regulatory frameworks that support derivatives trading, and access to advanced financial technologies further enhance the market's development. Underlying macroeconomic factors, including geopolitical uncertainties, interest rate fluctuations, and currency movements, play a significant role in shaping the Precious Metal Derivatives market in the United Kingdom.

Investors often turn to precious metal derivatives as a safe haven during times of economic instability, driving trading volumes and market activity. Additionally, government policies and central bank decisions impact the pricing and demand for these financial instruments in the UK 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.