Industry Metal Derivatives - Jamaica

Jamaica

The nominal value in the Industry Metal Derivatives market is projected to reach US$7.36bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.88% resulting in a projected total amount of US$8.08bn by 2029.
The average price per contract in the Industry Metal Derivatives market amounts to US$0.03 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 293.70k by 2029.

Market

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Analyst Opinion

The Industry Metal Derivatives market in Jamaica has been experiencing a notable surge in recent years, reflecting a growing interest in financial instruments tied to metal commodities.

Customer preferences: Investors in Jamaica have shown a preference for diversifying their portfolios by including metal derivatives, seeking to hedge against volatility in traditional financial markets and capitalize on potential price movements in the metal sector. This trend aligns with global patterns where investors are increasingly turning to commodities for portfolio risk management.

Trends in the market: One prominent trend in the Jamaican metal derivatives market is the increasing demand for gold derivatives. Gold has long been viewed as a safe-haven asset, especially during times of economic uncertainty, making it an attractive option for investors looking to safeguard their investments. The rise in gold derivative trading in Jamaica mirrors a similar trend seen in other regions where geopolitical tensions and market fluctuations drive up the appeal of precious metals.

Local special circumstances: Jamaica's proximity to major metal-producing regions and its established financial infrastructure have contributed to the growth of the metal derivatives market in the country. The presence of well-regulated exchanges and financial institutions has made it easier for investors to access a wide range of metal derivative products, further fueling market expansion.

Underlying macroeconomic factors: The Jamaican metal derivatives market is also influenced by broader macroeconomic factors such as global metal prices, interest rates, and currency fluctuations. Economic stability and government policies play a crucial role in shaping investor sentiment towards metal derivatives, as any significant shifts in these areas can impact the overall market dynamics. Additionally, regulatory developments and international trade agreements can have ripple effects on the metal derivatives market in Jamaica, highlighting the interconnected nature of the global commodities 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.