Precious Metal Derivatives - Malawi

Malawi

The nominal value in the Precious Metal Derivatives market is projected to reach US$1,165.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.80% resulting in a projected total amount of US$1,473.00m 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 10.06k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Malawi is experiencing a shift in customer preferences towards more diversified investment options.

Customer preferences: Investors in Malawi are increasingly looking to diversify their portfolios by including Precious Metal Derivatives as part of their investment strategy. This shift is driven by a growing awareness of the benefits of diversification and risk management in a volatile market environment.

Trends in the market: One noticeable trend in the Precious Metal Derivatives market in Malawi is the increasing demand for gold and silver derivatives. Investors are attracted to the stability and hedging properties of these precious metals, especially during times of economic uncertainty. Additionally, there is a growing interest in platinum and palladium derivatives, reflecting the evolving investment preferences in the country.

Local special circumstances: Malawi's economy, heavily reliant on agriculture, is susceptible to external factors such as global commodity prices and weather conditions. As a result, investors in Malawi are turning to Precious Metal Derivatives as a way to diversify their investment portfolios and mitigate risks associated with the country's economic vulnerabilities.

Underlying macroeconomic factors: The development of the Precious Metal Derivatives market in Malawi is also influenced by broader macroeconomic factors such as inflation rates, exchange rate fluctuations, and government policies. As investors seek to safeguard their wealth against inflation and currency depreciation, Precious Metal Derivatives offer a viable investment option that can provide a hedge against these risks. Furthermore, government initiatives to promote financial market development and investor protection are contributing to the growth of the Precious Metal Derivatives market in Malawi.

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.