Precious Metal Derivatives - G7

The nominal value in the Precious Metal Derivatives market is projected to reach US$13.14tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.59% resulting in a projected total amount of US$14.22tn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.07 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 217.90m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in G7 countries is experiencing a significant shift in dynamics and trends. Customer preferences in the Precious Metal Derivatives market in G7 countries are largely influenced by global economic conditions and geopolitical uncertainties.

Investors are increasingly turning to precious metals as a safe haven asset, driving up demand for derivatives such as futures and options. Additionally, the growing interest in environmental, social, and governance (ESG) investing has led to an uptick in demand for derivatives linked to sustainable precious metals. Trends in the market vary across G7 countries.

For instance, in the United States, the Federal Reserve's monetary policy decisions play a crucial role in shaping the direction of the Precious Metal Derivatives market. In Europe, regulatory changes and Brexit-related uncertainties are impacting trading volumes and product innovation. Meanwhile, in Japan, the market is influenced by the country's monetary policy stance and investor sentiment towards risk assets.

Local special circumstances also play a significant role in shaping the Precious Metal Derivatives market in G7 countries. For example, in the United Kingdom, the ongoing Brexit process and its impact on financial regulations are creating a level of uncertainty among market participants. In Canada, the close ties to the commodities market and the influence of the mining industry contribute to unique trading patterns in precious metal derivatives.

Underlying macroeconomic factors such as interest rates, inflation expectations, and currency movements are key drivers of the Precious Metal Derivatives market in G7 countries. Central bank policies, economic data releases, and geopolitical events all have a direct impact on investor sentiment and trading activity in the market. As a result, market participants closely monitor these factors to make informed decisions and manage risk effectively.

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.