Precious Metal Derivatives - Bulgaria

The nominal value in the Precious Metal Derivatives market is projected to reach US$8.19bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.60% resulting in a projected total amount of US$10.76bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.14 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 74.70k 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 Bulgaria is experiencing a notable shift in recent years. Customer preferences in Bulgaria are inclining towards more diverse investment options, including Precious Metal Derivatives, as they seek to diversify their portfolios and hedge against market volatility.

Trends in the market show a growing interest from retail investors in Bulgaria who are increasingly participating in Precious Metal Derivatives trading, driven by the accessibility of online trading platforms and the potential for high returns. Local special circumstances, such as the country's stable economic growth and increasing disposable income among the population, are contributing to the development of the Precious Metal Derivatives market in Bulgaria. Additionally, the presence of a well-established financial sector and regulatory framework is boosting investor confidence in engaging with these financial instruments.

Underlying macroeconomic factors, including global economic uncertainties and geopolitical tensions, are also playing a role in driving the demand for Precious Metal Derivatives in Bulgaria. Investors are turning to these instruments as a safe haven asset during times of market instability, further fueling the growth of the market in the country.

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.