Precious Metal Derivatives - Central & Western Europe

Central & Western Europe

The nominal value in the Precious Metal Derivatives market is projected to reach US$996.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.59% resulting in a projected total amount of US$1,189.00bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.01 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 87.07m by 2029.

Market

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Region comparison

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Analyst Opinion

The Precious Metal Derivatives market in Central & Western Europe is experiencing a significant uptick in activity, driven by various factors influencing investor behavior and market dynamics.

Customer preferences: Investors in Central & Western Europe are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against inflation and economic uncertainties. The allure of these derivatives lies in their ability to provide exposure to the price movements of precious metals without the need for physical ownership.

Trends in the market: In countries like Germany and Switzerland, there is a growing trend of institutional investors incorporating Precious Metal Derivatives into their investment strategies. This trend is fueled by the desire for portfolio protection and potential returns during times of market volatility. Additionally, retail investors are also showing interest in these derivatives, seeking alternative investment opportunities beyond traditional asset classes.

Local special circumstances: Central & Western Europe has a long-standing tradition of valuing stability and security in investments. This mindset is reflected in the increasing demand for Precious Metal Derivatives, which are seen as a safe haven asset in times of economic turmoil. Additionally, the region's well-established financial infrastructure and regulatory framework provide a conducive environment for the growth of the derivatives market.

Underlying macroeconomic factors: The geopolitical landscape in Central & Western Europe, along with global economic uncertainties, is driving investors to seek refuge in assets like precious metals. Factors such as trade tensions, political instability, and fluctuations in currency markets are contributing to the attractiveness of Precious Metal Derivatives as a risk management tool. Additionally, the low-interest-rate environment in the region is pushing investors towards alternative investments, further boosting the demand for these 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.