Precious Metal Derivatives - Costa Rica

Costa Rica

The nominal value in the Precious Metal Derivatives market is projected to reach US$8.23bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.53% resulting in a projected total amount of US$10.77bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.18 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 56.24k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Costa Rica is experiencing a notable uptick in activity and interest.

Customer preferences: Investors in Costa Rica 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 without owning physical assets are driving this shift in customer preferences.

Trends in the market: One prominent trend in the Costa Rican Precious Metal Derivatives market is the growing participation of retail investors. This demographic is attracted to the accessibility and flexibility of these derivatives, allowing them to engage in trading activities previously reserved for institutional investors. Additionally, there is a rising demand for more sophisticated derivative products tailored to the preferences of local investors.

Local special circumstances: Costa Rica's stable economic growth and increasing financial literacy among its population are creating a conducive environment for the development of the Precious Metal Derivatives market. The country's strong regulatory framework and the presence of established financial institutions are also contributing factors to the market's growth.

Underlying macroeconomic factors: The global economic uncertainty and fluctuating commodity prices are prompting investors in Costa Rica to seek alternative investment opportunities, with Precious Metal Derivatives offering a viable option. Additionally, the low interest rate environment is driving investors to explore derivatives as a means to enhance their returns in a challenging market landscape.

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.