Precious Metal Derivatives - Bhutan

Bhutan

The nominal value in the Precious Metal Derivatives market is projected to reach US$312.30m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.34% resulting in a projected total amount of US$386.30m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.36 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 0.89k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Bhutan is showing promising growth and evolving trends. Customer preferences in Bhutan are increasingly leaning towards investing in Precious Metal Derivatives as a way to diversify their investment portfolios and hedge against market volatility.

This shift in preferences is in line with global trends where investors are turning to derivatives as a means of managing risk and seeking higher returns. Trends in the Bhutanese Precious Metal Derivatives market indicate a growing interest from both retail and institutional investors. Retail investors are attracted to the accessibility and potential for high returns that derivatives offer, while institutional investors are utilizing these instruments for more sophisticated trading strategies.

This trend mirrors the increasing popularity of derivatives in emerging markets where market participants are becoming more familiar with these financial tools. Local special circumstances, such as the limited availability of traditional investment options in Bhutan, are driving the growth of the Precious Metal Derivatives market. With a relatively small stock market and fewer investment opportunities compared to larger economies, investors in Bhutan are turning to derivatives as a way to participate in global markets and access a wider range of investment products.

Underlying macroeconomic factors, including a stable economic environment and government support for financial market development, are also contributing to the growth of the Precious Metal Derivatives market in Bhutan. As the country continues to strengthen its regulatory framework and improve market infrastructure, investors are gaining confidence in participating in derivative markets. Overall, the Precious Metal Derivatives market in Bhutan is on a positive trajectory, driven by evolving customer preferences, global market trends, local circumstances, and supportive macroeconomic factors.

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.