Precious Metal Derivatives - Bahrain

Bahrain

The nominal value in the Precious Metal Derivatives market is projected to reach US$1,321.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.88% resulting in a projected total amount of US$1,676.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.05 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 29.84k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Bahrain is experiencing a notable increase in trading activity and product offerings.

Customer preferences: Investors in Bahrain are showing a growing interest in diversifying their portfolios through alternative investments like Precious Metal Derivatives. They are attracted to the potential for high returns and hedging opportunities that these financial instruments offer.

Trends in the market: One of the key trends in the Precious Metal Derivatives market in Bahrain is the introduction of innovative derivative products tailored to meet the specific needs of local investors. Market participants are increasingly looking for customized solutions that align with their risk appetite and investment objectives. This trend is driving the development of new derivative contracts and trading strategies in the market.

Local special circumstances: Bahrain's strategic location as a financial hub in the Middle East region is contributing to the growth of the Precious Metal Derivatives market. The country's well-established regulatory framework and supportive business environment are attracting both domestic and international investors to participate in derivative trading activities. Additionally, Bahrain's strong network of financial institutions and market infrastructure is facilitating the expansion of the Precious Metal Derivatives market in the country.

Underlying macroeconomic factors: The increasing geopolitical tensions and economic uncertainties globally are influencing investor behavior and driving demand for safe-haven assets like precious metals. In Bahrain, this macroeconomic environment is fueling interest in Precious Metal Derivatives as investors seek to protect their portfolios against market volatility and inflation risks. Moreover, the growing integration of Bahrain's financial markets with other global exchanges is providing investors with access to a wider range of derivative products and investment opportunities in 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.