Precious Metal Derivatives - Eastern Asia

Eastern Asia

The nominal value in the Precious Metal Derivatives market is projected to reach US$2.43tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.83% resulting in a projected total amount of US$2.66tn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.04 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 67.59m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Eastern Asia is experiencing a surge in interest and activity. Customer preferences in Eastern Asia lean towards using Precious Metal Derivatives as a hedge against economic uncertainties, given the region's history of market volatility and geopolitical tensions.

Trends in the market show an increasing demand for gold and silver derivatives in countries like China and Japan, driven by a growing number of institutional investors seeking alternative investment options. Local special circumstances, such as the cultural significance of gold in countries like South Korea and Taiwan, play a role in shaping the Precious Metal Derivatives market in Eastern Asia. Underlying macroeconomic factors like low interest rates and inflation concerns are contributing to the attractiveness of Precious Metal Derivatives as an investment vehicle in 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.