Precious Metal Derivatives - Denmark

Denmark

The nominal value in the Precious Metal Derivatives market is projected to reach US$43.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.61% resulting in a projected total amount of US$57.42bn 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 350.50k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Denmark is experiencing a notable shift in dynamics, reflecting global trends in the financial market.

Customer preferences: Investors in Denmark are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these derivatives lies in their ability to offer exposure to the price movements of precious metals without the need for physical ownership.

Trends in the market: One of the key trends in the Precious Metal Derivatives market in Denmark is the growing demand for gold and silver derivatives. This trend is driven by a combination of factors, including geopolitical uncertainties, low-interest rates, and inflation concerns. Investors see precious metals as a safe-haven asset during times of economic uncertainty, which has led to a surge in trading volumes for gold and silver derivatives.

Local special circumstances: Denmark's strong economy and stable political environment make it an attractive destination for investors looking to access the Precious Metal Derivatives market. The country's well-developed financial infrastructure and regulatory framework provide a conducive environment for trading these derivatives. Additionally, Denmark's position as a global financial hub in the Nordic region further enhances its appeal to investors seeking exposure to precious metals.

Underlying macroeconomic factors: The development of the Precious Metal Derivatives market in Denmark is also influenced by broader macroeconomic factors such as interest rates, inflation, and currency movements. As central banks around the world implement accommodative monetary policies to support economic growth, investors are increasingly turning to alternative assets like precious metal derivatives to protect their wealth and generate returns. In Denmark, the low-interest-rate environment and concerns about inflation are driving demand for these derivatives as investors seek to preserve the value of their capital.

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.