Industry Metal Derivatives - Nicaragua

Nicaragua

The nominal value in the Industry Metal Derivatives market is projected to reach US$7.02bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.70% resulting in a projected total amount of US$8.42bn 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 233.40k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Industry Metal Derivatives market in Nicaragua is experiencing a notable increase in trading activities and interest from investors.

Customer preferences: Investors in Nicaragua are showing a growing interest in diversifying their portfolios by including metal derivatives. This is driven by the potential for high returns and the opportunity to hedge against market volatility.

Trends in the market: The market in Nicaragua is witnessing a rise in the trading volume of metal derivatives, particularly gold and silver contracts. This trend is fueled by the global economic uncertainty, leading investors to seek safe-haven assets like precious metals. Additionally, the ease of access to online trading platforms has made it more convenient for investors to participate in the metal derivatives market.

Local special circumstances: Nicaragua's economy is heavily reliant on commodity exports, making it susceptible to fluctuations in global commodity prices. As a result, investors in the country are increasingly turning to metal derivatives as a way to mitigate risks associated with commodity price volatility. The government's efforts to promote foreign investment in the mining sector have also contributed to the growing interest in metal derivatives among local investors.

Underlying macroeconomic factors: The political and economic instability in Nicaragua has led to a depreciation of the local currency and rising inflation rates. In such a challenging economic environment, investors are turning to metal derivatives as a way to protect their wealth and preserve purchasing power. The uncertainty surrounding the country's future direction is further driving investors towards alternative investment options like metal derivatives.

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.