Precious Metal Derivatives - Worldwide

Worldwide

The nominal value in the Precious Metal Derivatives market is projected to reach €16.98tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.77% resulting in a projected total amount of €18.54tn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to €0.04 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 491.80m by 2029.

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Analyst Opinion

The Precious Metal Derivatives market is a dynamic and evolving sector that attracts investors worldwide due to its potential for high returns and portfolio diversification.

Customer preferences: Investors in the Precious Metal Derivatives market worldwide are increasingly drawn to these financial instruments as a hedge against inflation and geopolitical uncertainties. The ability to trade without needing to physically own the underlying assets is a key factor driving customer preferences in this market.

Trends in the market: In the United States, the Precious Metal Derivatives market is experiencing a surge in popularity among retail investors, driven by the ease of access through online trading platforms and the allure of quick profits. In Europe, there is a growing trend towards sustainable investing, leading to an increased demand for Precious Metal Derivatives that adhere to environmental, social, and governance (ESG) criteria. Meanwhile, in Asia, the market is witnessing a rise in algorithmic trading strategies and the adoption of advanced technology for trading Precious Metal Derivatives.

Local special circumstances: In the Middle East, the Precious Metal Derivatives market is influenced by cultural factors that place a high value on gold and other precious metals. This cultural affinity for precious metals drives trading activity in the region and contributes to the growth of the market. In Africa, the market for Precious Metal Derivatives is still developing, with regulatory frameworks and infrastructure being key factors that shape the local landscape.

Underlying macroeconomic factors: Globally, factors such as interest rates, inflation, and currency fluctuations play a significant role in shaping the Precious Metal Derivatives market. Economic uncertainties and geopolitical tensions can lead to increased demand for safe-haven assets like gold, impacting the prices of Precious Metal Derivatives. Additionally, government policies and central bank actions can influence investor sentiment and drive trading activity 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.