Industry Metal Derivatives - Burkina Faso

Burkina Faso

The nominal value in the Industry Metal Derivatives market is projected to reach US$3.45bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.56% resulting in a projected total amount of US$4.11bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.01 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in China (US$2,835.00bn in 2024).
In the Industry Metal Derivatives market, the number of contracts is expected to amount to 294.90k by 2029.

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Analyst Opinion

The Industry Metal Derivatives market in Burkina Faso is experiencing a notable increase in demand and activity.

Customer preferences: Customers in Burkina Faso are showing a growing interest in investing in metal derivatives as a way to diversify their portfolios and hedge against market risks. The appeal of these financial instruments lies in their potential for high returns and the opportunity to speculate on price movements without owning the physical metal.

Trends in the market: The market for metal derivatives in Burkina Faso is witnessing a surge in trading volume, driven by both individual investors and institutional players. This trend is in line with the global increase in commodity trading activity, as investors seek alternative assets to traditional stocks and bonds. The availability of online trading platforms has also made it easier for market participants in Burkina Faso to access and trade metal derivatives.

Local special circumstances: Burkina Faso's economy is heavily reliant on agriculture and mining, with gold being a significant export commodity. This dependency on mineral resources creates a favorable environment for metal derivatives trading, as investors look to capitalize on price fluctuations in the metals market. Additionally, the country's stable political environment and growing financial sector are attracting more investors to explore opportunities in metal derivatives.

Underlying macroeconomic factors: The macroeconomic landscape in Burkina Faso, characterized by steady GDP growth and low inflation rates, provides a conducive environment for investment activities, including metal derivatives trading. The government's efforts to promote economic diversification and attract foreign investment are also contributing to the development of the metal derivatives market in the country. Overall, the combination of favorable economic conditions and increasing investor interest is driving the growth of the Industry Metal Derivatives market in Burkina Faso.

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.