Precious Metal Derivatives - EAEU

EAEU

The nominal value in the Precious Metal Derivatives market is projected to reach US$214.70bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.54% resulting in a projected total amount of US$231.80bn 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 4.69m by 2029.

Market

Region

Region comparison

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Analyst Opinion

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

Customer preferences: Investors in the EAEU region are showing a growing interest in Precious Metal Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The flexibility and potential for high returns that these derivatives offer are appealing to both institutional and retail investors looking to capitalize on price movements in the precious metals market.

Trends in the market: One of the key trends in the Precious Metal Derivatives market in the EAEU is the increasing adoption of online trading platforms. This trend is driven by the convenience and accessibility these platforms provide to investors, allowing them to trade precious metal derivatives in real-time from anywhere. Additionally, there is a noticeable trend towards more sophisticated trading strategies, such as options and futures, as investors seek to maximize their returns and manage risk more effectively.

Local special circumstances: The EAEU region is home to a number of countries with rich reserves of precious metals, making it a significant player in the global precious metals market. This proximity to key sources of these metals creates a unique opportunity for investors in the region to directly participate in price movements by trading derivatives. Additionally, the EAEU's strategic location between Europe and Asia positions it as a hub for precious metal trading, attracting investors from both regions.

Underlying macroeconomic factors: The development of the Precious Metal Derivatives market in the EAEU is also influenced by broader macroeconomic factors such as inflation, interest rates, and geopolitical events. In times of economic uncertainty or inflationary pressures, investors often turn to precious metals as a safe haven asset, driving up demand for derivatives tied to these commodities. Similarly, fluctuations in global interest rates and geopolitical tensions can impact the price of precious metals, creating opportunities for investors to profit from these movements through derivatives trading.

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.