Precious Metal Derivatives - Mongolia

Mongolia

The nominal value in the Precious Metal Derivatives market is projected to reach US$1,801.00m 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$2,308.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.29 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 7.36k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Mongolia is experiencing a gradual but steady growth in recent years.

Customer preferences: Investors in Mongolia are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. The allure of potential high returns and the ability to trade without needing to physically own the underlying assets are driving this shift in preferences.

Trends in the market: One notable trend in the Precious Metal Derivatives market in Mongolia is the rising interest from retail investors. As more individuals seek alternative investment opportunities beyond traditional options, the demand for these derivatives has been on the rise. Additionally, the growing awareness and accessibility of online trading platforms have made it easier for retail investors to participate in this market.

Local special circumstances: Mongolia's economy, heavily reliant on mining activities, is susceptible to fluctuations in commodity prices. As a result, market participants in Mongolia are increasingly turning to Precious Metal Derivatives as a way to manage their exposure to commodity price risks. This unique economic landscape has contributed to the growth of the derivatives market in the country.

Underlying macroeconomic factors: The overall economic stability and growth in Mongolia have also played a role in the development of the Precious Metal Derivatives market. As the country continues to strengthen its financial infrastructure and regulatory framework, investors are gaining more confidence in participating in derivative markets. Additionally, the government's efforts to promote capital market development have created a favorable environment for the growth of the derivatives market.

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.