Precious Metal Derivatives - Central Asia

Central Asia

The nominal value in the Precious Metal Derivatives market is projected to reach US$8.39bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.51% resulting in a projected total amount of US$10.97bn 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 98.93k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Central Asia is witnessing a steady growth trajectory, driven by evolving customer preferences and unique local circumstances.

Customer preferences: Investors in Central Asia are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. With a growing interest in alternative investments, these financial instruments offer a convenient way to gain exposure to the precious metals market without holding physical assets.

Trends in the market: One prominent trend in the Central Asian Precious Metal Derivatives market is the rising demand for gold derivatives. Gold has always been a popular choice for investors in the region due to its perceived stability and value retention properties. As geopolitical tensions and economic uncertainties persist, investors are flocking towards gold derivatives as a safe haven asset.

Local special circumstances: Central Asia's geographical location and historical ties to the Silk Road have positioned it as a strategic hub for trade and commerce. This unique positioning has made the region a melting pot of diverse cultures and economic activities. As a result, the Precious Metal Derivatives market in Central Asia is influenced by a wide range of factors, including regional trade dynamics, government policies, and international relations.

Underlying macroeconomic factors: The economic landscape of Central Asia is characterized by a mix of emerging markets and developing economies. Countries in the region are focused on diversifying their revenue streams beyond traditional sectors like oil and gas. This shift towards a more diversified economy has led to increased interest in financial markets, including Precious Metal Derivatives. Additionally, the region's growing middle class and expanding financial infrastructure are creating new opportunities for market participants to engage in derivative trading activities.

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.