Precious Metal Derivatives - Namibia

Namibia

The nominal value in the Precious Metal Derivatives market is projected to reach US$1,555.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.47% resulting in a projected total amount of US$2,029.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.07 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 26.98k by 2029.

Market

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Currency

Analyst Opinion

The Precious Metal Derivatives market in Namibia has been experiencing a notable increase in trading activity and interest from investors.

Customer preferences: Investors in Namibia have shown a growing interest in diversifying their portfolios by including Precious Metal Derivatives. This can be attributed to the perceived stability of precious metals as a safe haven investment during times of economic uncertainty.

Trends in the market: One of the key trends in the Namibian market is the rising demand for gold and silver derivatives. This trend is driven by a combination of factors such as global economic conditions, geopolitical tensions, and inflation concerns, all of which contribute to the attractiveness of precious metals as an investment option.

Local special circumstances: Namibia's unique position as a mineral-rich country with a well-established mining industry plays a significant role in driving the demand for Precious Metal Derivatives. The country's mining sector contributes significantly to its economy, making precious metals a focal point for investors seeking exposure to commodity markets.

Underlying macroeconomic factors: The macroeconomic landscape in Namibia, including factors such as interest rates, inflation, and currency fluctuations, influences the demand for Precious Metal Derivatives. As investors seek to hedge against inflation and currency risks, the appeal of precious metals as a store of value remains strong in the Namibian market. Additionally, the overall economic stability of the country and its position within the global commodities market contribute to the growth of Precious Metal Derivatives trading.

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.