Industry Metal Derivatives - Colombia

Colombia

The nominal value in the Industry Metal Derivatives market is projected to reach US$140.00bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.20% resulting in a projected total amount of US$163.90bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.44 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 337.50k by 2029.

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Analyst Opinion

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

Customer preferences: Investors in Colombia are increasingly looking for alternative investment opportunities to diversify their portfolios and hedge against market volatility. This has led to a growing interest in metal derivatives as a financial instrument that offers exposure to the price movements of various metals without the need for physical ownership.

Trends in the market: One of the key trends in the metal derivatives market in Colombia is the rising demand for gold and silver derivatives. These precious metals are traditionally seen as safe-haven assets during times of economic uncertainty, making them attractive options for investors looking to protect their wealth. Additionally, the increasing industrial applications of metals like copper and aluminum are driving interest in derivatives linked to these commodities.

Local special circumstances: Colombia's rich mineral reserves and mining industry play a significant role in shaping the metal derivatives market in the country. The presence of mining companies and the fluctuating prices of metals in the global market influence investor sentiment towards metal derivatives. Moreover, the country's strong economic growth and stable political environment have created a favorable climate for investment in financial instruments like metal derivatives.

Underlying macroeconomic factors: The performance of the Colombian economy, global metal prices, and foreign exchange rates are key macroeconomic factors influencing the metal derivatives market in the country. Economic indicators such as GDP growth, inflation rates, and interest rates can impact investor confidence and drive demand for metal derivatives. Additionally, geopolitical events and trade policies can create volatility in metal prices, affecting the value of metal derivatives 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.