Precious Metal Derivatives - Benelux

Benelux

The nominal value in the Precious Metal Derivatives market is projected to reach US$188.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.31% resulting in a projected total amount of US$232.50bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.10 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 2.23m by 2029.

Market

Region

Region comparison

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Analyst Opinion

The Precious Metal Derivatives market in Benelux is experiencing a notable shift in customer preferences towards more diverse investment options. Investors are increasingly looking for alternative ways to hedge risks and diversify their portfolios, leading to a growing demand for precious metal derivatives in the region.

Customer preferences: Investors in Benelux are showing a strong inclination towards precious metal derivatives as a way to mitigate risks and capitalize on price movements without owning physical assets. This preference is driven by the desire for flexibility and liquidity in their investments, as well as the ability to benefit from leveraged positions in the market.

Trends in the market: One of the key trends in the Benelux Precious Metal Derivatives market is the rising popularity of gold and silver derivatives. These precious metals have always been considered safe-haven assets, especially during times of economic uncertainty, making them attractive options for investors looking to safeguard their wealth. Additionally, the increasing use of derivatives for speculative purposes is also contributing to the growth of the market in the region.

Local special circumstances: Benelux countries, comprising Belgium, the Netherlands, and Luxembourg, have a well-established financial services sector with a high level of sophistication among investors. This environment fosters a conducive atmosphere for the development of derivative markets, including those related to precious metals. The presence of major financial institutions and a culture of investment further propels the demand for these instruments in the region.

Underlying macroeconomic factors: The economic stability and strong regulatory framework in Benelux provide a solid foundation for the growth of the Precious Metal Derivatives market. Moreover, the low-interest-rate environment and uncertainties surrounding traditional investment options have prompted investors to explore alternative avenues such as derivatives. The geopolitical landscape and global economic conditions also play a significant role in shaping investor sentiment towards precious metal derivatives in the region.

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.