Precious Metal Derivatives - Chile

Chile

The nominal value in the Precious Metal Derivatives market is projected to reach US$37.34bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.27% resulting in a projected total amount of US$48.27bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.12 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 390.90k by 2029.

Market

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Analyst Opinion

The Precious Metal Derivatives market in Chile is experiencing a notable surge in activity and interest from investors.

Customer preferences: Investors in Chile 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 coupled with the ability to trade these derivatives without owning the physical assets is attracting a wide range of investors, from individual traders to institutional players.

Trends in the market: One of the key trends in the Chilean Precious Metal Derivatives market is the growing popularity of gold and silver derivatives. These two metals have traditionally been seen as safe-haven assets, especially during times of economic uncertainty, making them attractive options for investors looking to protect their wealth. Additionally, the rise of online trading platforms has made it easier for investors in Chile to access and trade Precious Metal Derivatives, further fueling market growth.

Local special circumstances: Chile's strong mining industry plays a significant role in shaping the Precious Metal Derivatives market in the country. As one of the world's top producers of copper, Chile's economy is closely tied to the performance of commodities markets. This close relationship with the commodities sector has also influenced investor sentiment towards Precious Metal Derivatives, with many seeing them as a way to capitalize on the country's mining expertise and resources.

Underlying macroeconomic factors: The economic stability and regulatory environment in Chile are also contributing to the development of the Precious Metal Derivatives market. With a well-established financial system and robust investor protections in place, Chile provides a secure and attractive environment for trading these derivatives. Additionally, factors such as inflation rates, interest rates, and currency fluctuations play a role in shaping investor behavior and driving demand for Precious Metal Derivatives in the country.

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.