Precious Metal Derivatives - Americas

Americas

The nominal value in the Precious Metal Derivatives market is projected to reach US$12.94tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.60% resulting in a projected total amount of US$14.01tn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.11 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 131.40m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Americas is experiencing a notable surge in interest and activity.

Customer preferences: Investors in the Americas are increasingly turning to precious metal derivatives as a way to diversify their portfolios and hedge against inflation and economic uncertainties. The allure of precious metals as a safe haven asset during times of market volatility is a key driver for customers in the region.

Trends in the market: In the United States, the largest economy in the Americas, there is a growing trend of individual investors and institutional players incorporating precious metal derivatives into their investment strategies. This trend is fueled by the easy accessibility of derivatives through online trading platforms and the desire for portfolio protection.

Local special circumstances: In countries like Brazil and Mexico, where economic stability can be a concern, precious metal derivatives are seen as a valuable tool for wealth preservation. The local special circumstance of currency fluctuations and political instability in some parts of the region further propels the demand for these derivatives as a way to mitigate risk.

Underlying macroeconomic factors: The low interest rate environment in the Americas, coupled with expansive monetary policies, is also playing a significant role in driving the demand for precious metal derivatives. As investors search for alternative assets that can offer returns in such an environment, derivatives linked to precious metals become an attractive option. Additionally, the ongoing trade tensions and geopolitical uncertainties globally are contributing to the appeal of precious metal derivatives as a form of insurance against market risks.

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.