Precious Metal Derivatives - New Zealand

New Zealand

The nominal value in the Precious Metal Derivatives market is projected to reach US$28.22bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.72% resulting in a projected total amount of US$37.26bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.12 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 292.40k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in New Zealand is experiencing a notable shift in recent years. Customer preferences in New Zealand are leaning towards more diverse investment options, with a growing interest in alternative financial instruments such as precious metal derivatives.

Investors are increasingly looking for ways to diversify their portfolios and hedge against market volatility, driving the demand for these derivatives in the country. Trends in the market indicate a rising number of retail investors participating in precious metal derivatives trading in New Zealand. This trend is partly fueled by the easy access to online trading platforms and the availability of educational resources on derivative trading.

Additionally, the appeal of potentially higher returns compared to traditional investment options is attracting more individual investors to this market. Local special circumstances, such as the country's stable regulatory environment and well-established financial infrastructure, are contributing to the growth of the Precious Metal Derivatives market in New Zealand. These factors provide a level of confidence and security for investors looking to engage in derivative trading, further driving the market expansion.

Underlying macroeconomic factors, including global economic uncertainties and fluctuations in currency values, are also influencing the development of the Precious Metal Derivatives market in New Zealand. As investors seek safe-haven assets to protect their wealth during times of market instability, the demand for precious metal derivatives as a hedging tool is expected to continue growing in the country.

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.