Precious Metal Derivatives - Cyprus

Cyprus

The nominal value in the Precious Metal Derivatives market is projected to reach US$2,410.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.79% resulting in a projected total amount of US$3,045.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.15 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 18.55k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Cyprus is experiencing a notable increase in trading activity and interest from investors.

Customer preferences: Investors in Cyprus 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 these derivatives without needing to physically own the underlying assets are driving factors for customers in the market.

Trends in the market: One of the key trends in the Precious Metal Derivatives market in Cyprus is the growing popularity of gold and silver derivatives. Investors see these metals as safe-haven assets during times of economic uncertainty, leading to a surge in trading volumes for gold and silver derivatives. Additionally, the ease of trading these derivatives online has made them more accessible to a wider range of investors in Cyprus.

Local special circumstances: Cyprus's strategic location as a financial hub in the Eastern Mediterranean region has contributed to the growth of the Precious Metal Derivatives market. The country's well-established financial infrastructure and regulatory framework provide a conducive environment for investors looking to trade in these derivatives. Furthermore, Cyprus's status as a member of the European Union offers investors a sense of security and stability when participating in the Precious Metal Derivatives market.

Underlying macroeconomic factors: The macroeconomic landscape in Cyprus, including factors such as interest rates, inflation, and geopolitical stability, plays a significant role in shaping the Precious Metal Derivatives market. Economic indicators and global events can impact the prices of precious metals, influencing the trading behavior of investors in Cyprus. As investors seek ways to mitigate risks and capitalize on market opportunities, the Precious Metal Derivatives market in Cyprus is poised to continue its growth trajectory.

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.