Precious Metal Derivatives - Belize

The nominal value in the Precious Metal Derivatives market is projected to reach US$312.40m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.06% resulting in a projected total amount of US$399.80m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.37 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 906.80 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 Belize is experiencing a notable shift in dynamics. Customer preferences in Belize for Precious Metal Derivatives are influenced by a global trend towards alternative investments that offer diversification and potential hedging against market volatility.

Investors in Belize are increasingly looking at Precious Metal Derivatives as a way to protect their portfolios and capitalize on price movements in the precious metals market. Trends in the market in Belize indicate a growing interest in gold and silver derivatives, driven by their historical role as safe-haven assets during times of economic uncertainty. The demand for these derivatives is also fueled by the convenience they offer in terms of trading and liquidity compared to physical precious metal investments.

Local special circumstances in Belize, such as a stable regulatory environment and a growing interest in financial markets, are contributing to the development of the Precious Metal Derivatives market. The country's strategic location and its status as a financial hub in the region are attracting investors looking to access the market for precious metal derivatives. Underlying macroeconomic factors, such as inflation concerns and currency fluctuations, are also playing a role in shaping the Precious Metal Derivatives market in Belize.

Investors are turning to these derivatives as a way to hedge against inflation and protect their wealth in the face of economic uncertainties both locally and globally. Additionally, the accessibility of these derivatives through online trading platforms is making them more attractive to a wider range of investors in Belize.

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.