Precious Metal Derivatives - Kuwait

Kuwait

The nominal value in the Precious Metal Derivatives market is projected to reach US$4.51bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.63% resulting in a projected total amount of US$5.93bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$1.10 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 4.57k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Kuwait is experiencing a notable shift in dynamics.

Customer preferences: Investors in Kuwait are increasingly turning to Precious Metal Derivatives as a way to diversify their investment portfolios and hedge against market volatility. The allure of these derivatives lies in their ability to offer exposure to the price movements of precious metals without the need to physically own the commodities.

Trends in the market: One significant trend in the Kuwaiti market is the growing demand for gold derivatives, driven by the traditional cultural affinity towards gold as a store of value. Additionally, there is a rising interest in silver and platinum derivatives, reflecting a broader trend towards exploring alternative precious metals for investment purposes.

Local special circumstances: Kuwait's strategic location in the Middle East, coupled with its status as a major financial hub in the region, plays a crucial role in shaping the Precious Metal Derivatives market. The country's stable economy and supportive regulatory environment further contribute to the development of the derivatives market.

Underlying macroeconomic factors: The fluctuation in global precious metal prices, geopolitical tensions, and currency movements are key macroeconomic factors influencing the Precious Metal Derivatives market in Kuwait. Investors closely monitor these factors to make informed decisions and capitalize on market opportunities. Additionally, the overall economic stability and government policies play a significant role in shaping investor sentiment and market performance.

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.