Precious Metal Derivatives - Algeria

  • Algeria
  • The nominal value in the Precious Metal Derivatives market is projected to reach US$220.20m in 2024.
  • It is expected to show an annual growth rate (CAGR 2024-2029) of 12.08% resulting in a projected total amount of US$389.50m by 2029.
  • The average price per contract in the Precious Metal Derivatives market amounts to US$0.00 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 209.30k by 2029.
 
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Analyst Opinion

Algeria, known for its rich history and diverse culture, also has a growing Precious Metal Derivatives market that reflects the country's evolving financial landscape. Customer preferences in Algeria are shifting towards more diversified investment opportunities, with a noticeable interest in Precious Metal Derivatives as a way to hedge against economic uncertainties and inflation.

Investors in the country are increasingly looking for alternative ways to protect their wealth and diversify their portfolios, driving the demand for these financial instruments. Trends in the Precious Metal Derivatives market in Algeria indicate a steady growth in trading volume and market participation. As awareness about the benefits of derivatives trading increases among investors, more individuals and institutions are turning to these instruments to manage risk and speculate on price movements.

This trend is in line with the global increase in derivatives trading, reflecting a broader shift towards sophisticated financial instruments in emerging markets. Local special circumstances, such as limited investment options and a relatively underdeveloped financial market, contribute to the growing popularity of Precious Metal Derivatives in Algeria. With traditional investment avenues offering limited returns, investors are exploring alternative options like derivatives to enhance their investment strategies and maximize returns.

Underlying macroeconomic factors, including economic stability and government regulations, play a crucial role in shaping the Precious Metal Derivatives market in Algeria. As the country continues to strengthen its economic fundamentals and improve regulatory frameworks, the derivatives market is expected to further expand and attract a wider range of participants. Additionally, external factors like global economic trends and geopolitical events can also influence the performance of the market in Algeria.

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.

Overview

  • Value Development
  • Volume
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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