Precious Metal Derivatives - France

France

The nominal value in the Precious Metal Derivatives market is projected to reach US$333.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.76% resulting in a projected total amount of US$400.70bn 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 6.02m by 2029.

Market

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Analyst Opinion

The Precious Metal Derivatives market in France reflects a growing interest in alternative investment options beyond traditional securities.

Customer preferences: Investors in France are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. The allure of these derivatives lies in their potential for high returns and as a store of value during economic uncertainties.

Trends in the market: One notable trend in the French Precious Metal Derivatives market is the shift towards online trading platforms, making it more accessible to a broader range of investors. Additionally, there is a rise in demand for environmentally sustainable derivatives, aligning with the global trend towards responsible investing.

Local special circumstances: France's status as a major player in the European economy contributes to the vibrancy of its Precious Metal Derivatives market. The country's strong financial sector and investor-friendly regulations create an environment conducive to derivative trading. Moreover, the cultural affinity for luxury goods and the appreciation of art and craftsmanship further drive interest in precious metals as financial instruments.

Underlying macroeconomic factors: The performance of the French economy, geopolitical events, and global market trends all influence the Precious Metal Derivatives market in France. Economic indicators such as inflation rates, interest rates, and currency fluctuations play a significant role in shaping investor sentiment towards these derivatives. Additionally, regulatory changes and policy decisions can impact the overall growth and stability of the market.

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.