Precious Metal Derivatives - CIS

The nominal value in the Precious Metal Derivatives market is projected to reach US$216.80bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.58% resulting in a projected total amount of US$234.50bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.06 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 4.76m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in CIS is experiencing a notable shift in dynamics. Customer preferences in the CIS region are increasingly leaning towards investing in financial instruments that offer diversification and hedging opportunities.

Precious metal derivatives provide investors with a way to manage risk and potentially enhance returns in their portfolios, aligning with the growing interest in alternative investment options. Trends in the market indicate a rising demand for gold and silver derivatives in the CIS region. This trend is driven by geopolitical uncertainties, inflation concerns, and the historical role of precious metals as safe-haven assets during times of market volatility.

Investors are turning to these derivatives as a way to protect their wealth and navigate unpredictable economic conditions. Local special circumstances, such as the historical significance of gold in countries within the CIS region, play a significant role in shaping the Precious Metal Derivatives market. Gold has long been viewed as a symbol of wealth and stability in many CIS countries, influencing investor behavior and preferences towards gold derivatives.

This cultural affinity towards gold contributes to the overall demand for precious metal derivatives in the region. Underlying macroeconomic factors, including currency fluctuations, interest rates, and global economic trends, also impact the Precious Metal Derivatives market in the CIS. Investors closely monitor these factors to make informed decisions about their derivative investments, further driving the market activity and shaping its future trajectory within the region.

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.