Industry Metal Derivatives - Malta

Malta

The nominal value in the Industry Metal Derivatives market is projected to reach US$8.39bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.57% resulting in a projected total amount of US$10.00bn 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 294.30k by 2029.

Market

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Analyst Opinion

The Metal Derivatives market in Malta is experiencing a notable shift in recent times, reflecting global trends in the financial derivatives industry. Customer preferences in Malta are aligning with the growing interest in alternative investments, with investors seeking to diversify their portfolios beyond traditional asset classes.

This shift is driving demand for metal derivatives as a way to hedge against market volatility and inflation, while also providing opportunities for speculative trading. Trends in the market indicate a rising interest in precious metal derivatives, such as gold and silver, as safe-haven assets amid economic uncertainties. The appeal of these commodities lies in their ability to retain value during times of market turbulence, making them attractive options for investors looking to safeguard their wealth.

Local special circumstances, such as Malta's position as a financial services hub within the European Union, are contributing to the growth of the Metal Derivatives market. The country's well-established regulatory framework and access to a skilled workforce are attracting financial institutions and investors alike, further bolstering the demand for metal derivatives in the region. Underlying macroeconomic factors, including global geopolitical tensions and central bank policies, are also shaping the Metal Derivatives market in Malta.

As investors navigate a complex economic landscape, the appeal of metal derivatives as a means of portfolio diversification and risk management is expected to continue driving growth 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.