Precious Metal Derivatives - Africa

Africa

The nominal value in the Precious Metal Derivatives market is projected to reach US$154.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.13% resulting in a projected total amount of US$198.50bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.06 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$11,920.00bn in 2024).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 3.37m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The demand for Precious Metal Derivatives in Africa is influenced by a variety of factors, shaping the market in unique ways compared to other regions.

Customer preferences: African investors are increasingly turning to Precious Metal Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The appeal of these derivatives lies in their ability to provide exposure to the price movements of precious metals without the need for physical ownership.

Trends in the market: In countries with well-established financial markets such as South Africa and Nigeria, the Precious Metal Derivatives market is experiencing steady growth. Investors in these countries are attracted to the liquidity and transparency offered by derivatives, allowing them to easily trade and manage their exposure to precious metals.

Local special circumstances: Political and economic stability play a crucial role in shaping the Precious Metal Derivatives market in Africa. Countries with stable governance and strong regulatory frameworks tend to see higher participation in derivative markets, as investors feel more confident in the security of their investments.

Underlying macroeconomic factors: The overall economic growth and inflation rates in African countries impact the demand for Precious Metal Derivatives. During periods of economic uncertainty or high inflation, investors often turn to precious metals as a safe haven asset, driving up the demand for derivatives linked to these metals. Commodity prices, currency fluctuations, and global economic trends also influence the Precious Metal Derivatives market in Africa. As investors navigate these factors, the market continues to evolve, offering new opportunities and challenges for market participants across the continent.

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.