Precious Metal Derivatives - Armenia

Armenia

The nominal value in the Precious Metal Derivatives market is projected to reach US$1,898.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.84% resulting in a projected total amount of US$2,521.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.25 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 8.92k by 2029.

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Analyst Opinion

Armenia, a country known for its rich history and cultural heritage, is also experiencing interesting developments in the Precious Metal Derivatives market.

Customer preferences: Armenian investors have shown a growing interest in diversifying their investment portfolios by including Precious Metal Derivatives. This trend can be attributed to the appeal of these derivatives as a way to hedge against inflation and geopolitical uncertainties, which are concerns for many investors globally.

Trends in the market: In Armenia, there is a noticeable trend towards increased participation in Precious Metal Derivatives trading, especially among retail investors. This surge in activity can be linked to the growing accessibility of online trading platforms and the availability of educational resources on derivative products. Additionally, the allure of potentially high returns in a relatively short period is attracting more investors to explore this market.

Local special circumstances: Armenia's geopolitical location and historical ties to the precious metals industry play a role in shaping the dynamics of the Precious Metal Derivatives market. The country's proximity to major gold and silver-producing regions, combined with a population that values tangible assets like precious metals, creates a unique environment for the development of this market.

Underlying macroeconomic factors: The macroeconomic landscape in Armenia, characterized by stable economic growth and a relatively young financial market, provides a fertile ground for the expansion of the Precious Metal Derivatives market. As the country continues to strengthen its regulatory framework and investor protection measures, more market participants are likely to feel confident in exploring derivative products tied to precious metals.

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.