Precious Metal Derivatives - Fiji

Fiji

The nominal value in the Precious Metal Derivatives market is projected to reach US$599.10m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.21% resulting in a projected total amount of US$736.20m 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 11.88k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Fiji is showing interesting developments that reflect global trends in the financial sector.

Customer preferences: Investors in Fiji 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 coupled with the perceived stability of precious metals makes these derivatives an attractive option for both individual and institutional investors in the country.

Trends in the market: One noticeable trend in the Precious Metal Derivatives market in Fiji is the growing demand for gold and silver contracts. This trend mirrors the global interest in these metals as safe-haven assets during times of economic uncertainty. The ease of trading these derivatives online has also contributed to their popularity among Fijian investors, allowing them to participate in the market with greater convenience.

Local special circumstances: Fiji's unique position as a hub for tourism and trade in the Pacific region plays a role in shaping the Precious Metal Derivatives market. The country's stable political environment and well-regulated financial sector provide a conducive environment for investors looking to engage in derivatives trading. Additionally, the cultural affinity towards precious metals in Fiji adds to the appeal of these instruments among local investors.

Underlying macroeconomic factors: The performance of the global economy and geopolitical events have a significant impact on the Precious Metal Derivatives market in Fiji. Economic indicators from major economies influence the prices of precious metals, affecting the value of derivatives in the market. Moreover, any shifts in trade policies or international relations can create fluctuations in the demand for these assets, further shaping the dynamics of the market in Fiji.

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.