Industry Metal Derivatives - Caribbean

Caribbean

The nominal value in the Industry Metal Derivatives market is projected to reach US$158.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.02% resulting in a projected total amount of US$193.40bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.12 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 1.48m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in Caribbean is experiencing a shift in customer preferences towards more diversified investment options.

Customer preferences: Investors in the Caribbean are increasingly showing interest in metal derivatives as a way to hedge against market volatility and diversify their portfolios. The appeal of metal derivatives lies in their ability to provide exposure to the price movements of various metals without the need to physically own the commodities.

Trends in the market: One noticeable trend in the Caribbean metal derivatives market is the growing demand for gold and silver derivatives. These precious metals are seen as safe-haven assets during times of economic uncertainty, making them attractive to investors looking to protect their wealth. Additionally, the increasing industrial applications of metals like copper are driving interest in base metal derivatives.

Local special circumstances: The Caribbean region's reliance on tourism and natural resources exports makes it vulnerable to external economic shocks. As a result, investors in the region are turning to metal derivatives as a way to mitigate risk and safeguard their investments. The relatively underdeveloped financial markets in some Caribbean countries also contribute to the appeal of metal derivatives as a more accessible investment option.

Underlying macroeconomic factors: The global economic landscape, including factors such as inflation rates, currency fluctuations, and geopolitical tensions, plays a significant role in shaping the metal derivatives market in the Caribbean. Economic indicators like interest rates and GDP growth impact investor sentiment and drive demand for different types of metal derivatives. Additionally, regulatory changes and government policies can influence the accessibility and attractiveness of metal derivatives to investors in the region.

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.