Precious Metal Derivatives - Belgium

Belgium

The nominal value in the Precious Metal Derivatives market is projected to reach US$65.23bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.67% resulting in a projected total amount of US$85.95bn 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 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 925.50k by 2029.

Market

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Analyst Opinion

Belgium, known for its rich history and diverse culture, also plays a significant role in the Precious Metal Derivatives market.

Customer preferences: Investors in Belgium show a growing interest in Precious Metal Derivatives as a way to diversify their portfolios and hedge against economic uncertainties. They are attracted to the potential for high returns and the ability to trade these financial instruments easily.

Trends in the market: In Belgium, there is a noticeable trend towards increased trading volumes of Precious Metal Derivatives, reflecting the growing confidence of investors in these instruments. The market is witnessing a surge in demand for derivatives linked to gold, silver, platinum, and palladium, driven by the appeal of these metals as safe-haven assets.

Local special circumstances: Belgium's strategic location in Europe and its well-established financial infrastructure make it an attractive hub for trading Precious Metal Derivatives. The country's strong regulatory framework and investor protection measures also contribute to the market's development and stability.

Underlying macroeconomic factors: The evolving geopolitical landscape and global economic uncertainties play a crucial role in shaping the Precious Metal Derivatives market in Belgium. As investors seek ways to safeguard their investments against market volatility, the demand for these derivatives is expected to continue growing. Additionally, factors such as interest rates, inflation, and currency fluctuations influence investor sentiment and drive trading activity in the market.

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.