Precious Metal Derivatives - Australia & Oceania

The nominal value in the Precious Metal Derivatives market is projected to reach US$231.10bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.91% resulting in a projected total amount of US$254.10bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.09 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$11.92tn in 2024).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 2.93m by 2029.

Definition:

The Precious Metal Derivatives market refers to derivatives of precious metals such as gold or silver. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of gold, an investor could own a derivative of gold). Therefore, physical commodities are out of scope in this analysis.

Structure:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year), the average notional value per contract as well as the price data of popular specific derivatives of this category.

Additional information:

Examples of popular precious metal derivatives are gold, silver, or platinum.

Precious Metal Derivatives, e.g. Gold, Silver, Platinum

Physical precious metal commodities

The Precious Metal Derivatives market in Australia & Oceania is witnessing a growing demand from investors and traders looking to diversify their portfolios and hedge against market uncertainties. Customer preferences in the region are shifting towards alternative investments like Precious Metal Derivatives due to their ability to provide a hedge against inflation and geopolitical risks.

Investors are increasingly turning to gold and silver derivatives as a safe haven asset in times of economic uncertainty. Trends in the market show a rise in trading volumes of Precious Metal Derivatives, driven by increased interest from institutional investors and retail traders alike. The introduction of innovative derivative products and trading platforms has made it easier for market participants in Australia & Oceania to access and trade these instruments.

Local special circumstances, such as the region's proximity to key mining operations and the strong presence of commodity trading firms, contribute to the development of the Precious Metal Derivatives market. This proximity provides market participants with valuable insights into supply chain dynamics and price movements, influencing their trading decisions. Underlying macroeconomic factors, including interest rate movements, currency fluctuations, and global economic conditions, play a significant role in shaping the Precious Metal Derivatives market in Australia & Oceania.

Investors closely monitor these factors to gauge the direction of precious metal prices and adjust their derivative positions accordingly.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Precious metals have long been seen as a hedge against inflation and economic uncertainty. When stock markets are volatile or currencies devalue, investors flock to precious metals like gold and silver as a store of value, driving their prices up. Gold, in particular, stands out as the most popular choice for protecting wealth in times of uncertainty, with central banks around the world holding vast reserves to safeguard against currency fluctuations and political upheaval. Also, the demand for gold as an investment outweighs its demand for industrial uses - more so if we also consider owning jewelry as a form of investment. This pattern contrasts sharply to other precious metals. Silver, for instance, has a much stronger industrial demand, due to its use in sectors like electronics, solar panels, and medical equipment. Platinum follows a similar pattern, with industrial demand outpacing investment demand, due to the its many different end uses.