Precious Metal Derivatives - Brazil

Brazil

The nominal value in the Precious Metal Derivatives market is projected to reach US$245.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.31% resulting in a projected total amount of US$274.90bn 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 2.71m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Brazil has been witnessing a steady growth in recent years.

Customer preferences: Investors in Brazil have shown a growing interest in diversifying their portfolios by including Precious Metal Derivatives. This can be attributed to the desire for hedging against inflation and geopolitical uncertainties, as well as seeking higher returns compared to traditional investment options.

Trends in the market: One noticeable trend in the Brazilian Precious Metal Derivatives market is the increasing participation of retail investors. This trend is fueled by the accessibility of online trading platforms and the availability of educational resources on derivatives trading. Moreover, there is a growing demand for innovative derivative products tailored to meet the specific needs of individual investors.

Local special circumstances: Brazil's economic landscape, characterized by volatility in currency and interest rates, plays a significant role in shaping the Precious Metal Derivatives market. Investors in Brazil often turn to derivatives as a way to manage risks associated with currency fluctuations and interest rate movements. Additionally, the country's strong mining industry contributes to the availability of underlying assets for derivative contracts.

Underlying macroeconomic factors: The development of the Precious Metal Derivatives market in Brazil is also influenced by broader macroeconomic factors. Factors such as the country's GDP growth, inflation rate, and government policies impact investor sentiment and overall market dynamics. As Brazil continues to navigate through economic reforms and global market uncertainties, the demand for Precious Metal Derivatives is expected to remain robust.

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.