Precious Metal Derivatives - Latvia

Latvia

The nominal value in the Precious Metal Derivatives market is projected to reach US$4.65bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.09% resulting in a projected total amount of US$5.96bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.19 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 29.04k by 2029.

Market

Region

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Currency

Analyst Opinion

The Precious Metal Derivatives market in Latvia is experiencing a gradual but steady growth in recent years. Customer preferences in Latvia show a growing interest in diversifying investment portfolios, seeking alternative financial instruments such as Precious Metal Derivatives to hedge against market volatility and inflation risks.

Trends in the market indicate an increasing number of retail investors in Latvia turning to Precious Metal Derivatives as a way to capitalize on the potential price movements of precious metals without owning the physical commodities. Local special circumstances, such as the limited availability of traditional investment options and a desire for higher returns, are driving Latvian investors towards exploring Precious Metal Derivatives as a viable financial instrument. Underlying macroeconomic factors, including global economic uncertainty, low interest rates, and geopolitical tensions, are contributing to the growing popularity of Precious Metal Derivatives in Latvia as investors seek safe-haven assets to protect their wealth.

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.