Precious Metal Derivatives - Caribbean

Caribbean

The nominal value in the Precious Metal Derivatives market is projected to reach US$43.72bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 6.73% resulting in a projected total amount of US$60.56bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.09 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 550.80k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Caribbean reflects a growing interest in alternative investment options among investors in the region.

Customer preferences: Investors in the Caribbean are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. The allure of potentially high returns and the ability to trade these financial instruments electronically have made them popular among both institutional and retail investors.

Trends in the market: One of the key trends in the Precious Metal Derivatives market in the Caribbean is the increasing demand for gold and silver contracts. As traditional safe-haven assets, gold and silver derivatives are seen as a way to protect wealth during times of economic uncertainty. This trend is further fueled by global geopolitical tensions and fluctuations in currency markets, driving investors to seek stability in these precious metals.

Local special circumstances: The Caribbean region's historical ties to mining and precious metals play a significant role in shaping the local derivatives market. Countries like Jamaica and the Dominican Republic have a rich history of gold and silver mining, which influences investor sentiment towards these assets. Additionally, the region's tourism-driven economy and exposure to external shocks make investors more inclined to explore alternative investment avenues like Precious Metal Derivatives.

Underlying macroeconomic factors: The economic stability of the Caribbean countries, coupled with their vulnerability to external factors like natural disasters and global economic downturns, creates a conducive environment for the growth of the Precious Metal Derivatives market. Investors view these derivatives as a way to mitigate risks associated with traditional asset classes and safeguard their wealth in the face of unpredictable events. Moreover, the region's reliance on imports and foreign exchange earnings adds another layer of complexity to investor decision-making, driving the demand for diversified investment options like Precious Metal Derivatives.

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.