Precious Metal Derivatives - Malta

Malta

The nominal value in the Precious Metal Derivatives market is projected to reach US$2,034.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.89% resulting in a projected total amount of US$2,582.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.33 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 6.60k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Malta is experiencing a notable shift in recent times.

Customer preferences: Investors in Malta are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal lies in the opportunity to gain exposure to the price movements of precious metals without the need to own physical assets.

Trends in the market: One key trend in the Maltese market is the growing interest in gold derivatives, driven by global economic uncertainties and geopolitical tensions. Investors are seeking safe-haven assets, and gold derivatives provide a convenient way to participate in the precious metal market. Additionally, there is a rising demand for silver derivatives, as industrial usage of silver remains strong, especially in sectors like electronics and renewable energy.

Local special circumstances: Malta's strategic location as a financial hub in the Mediterranean region has contributed to the development of its Precious Metal Derivatives market. The country's stable regulatory environment and well-established financial infrastructure attract investors looking to access the derivatives market. Moreover, the presence of experienced financial institutions and skilled professionals further supports the growth of the market.

Underlying macroeconomic factors: The evolving global economic landscape, marked by trade tensions and economic uncertainties, plays a significant role in shaping the Precious Metal Derivatives market in Malta. As investors seek alternative investment options to navigate market risks, the demand for precious metal derivatives is expected to continue growing. Additionally, fluctuations in interest rates and currency values impact investor sentiment towards derivatives linked to precious metals, influencing market dynamics in Malta.

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.