Precious Metal Derivatives - Iceland

Iceland

The nominal value in the Precious Metal Derivatives market is projected to reach US$3,178.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.06% resulting in a projected total amount of US$4,067.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.13 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 33.87k by 2029.

Market

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Currency

Analyst Opinion

Over the past few years, the Precious Metal Derivatives market in Iceland has shown significant growth and development. Customer preferences in Iceland have been shifting towards alternative investment options, such as Precious Metal Derivatives, as investors seek diversification and higher returns in a volatile market environment.

Trends in the market indicate a growing interest from both retail and institutional investors in Precious Metal Derivatives, driven by the appeal of hedging against inflation and geopolitical uncertainties. Local special circumstances, such as Iceland's small but sophisticated financial market, have created a conducive environment for the expansion of Precious Metal Derivatives trading, attracting international investors looking for niche opportunities. Underlying macroeconomic factors, including low interest rates and a stable political environment, have contributed to the increasing popularity of Precious Metal Derivatives in Iceland, providing a favorable backdrop for market growth and innovation.

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.