Precious Metal Derivatives - Nicaragua

Nicaragua

The nominal value in the Precious Metal Derivatives market is projected to reach US$1,722.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.85% resulting in a projected total amount of US$2,182.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.24 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 8.33k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The demand for Precious Metal Derivatives in Nicaragua has been steadily increasing in recent years.

Customer preferences: Investors in Nicaragua have shown a growing interest in diversifying their portfolios and hedging against market volatility through Precious Metal Derivatives. These financial instruments offer a way to participate in the price movements of precious metals without owning the physical assets.

Trends in the market: One noticeable trend in the Nicaraguan market is the rising popularity of gold and silver derivatives. Investors are drawn to the stability and value retention properties of these metals, especially during times of economic uncertainty. Additionally, the ease of trading these derivatives on global platforms has made them more accessible to Nicaraguan investors.

Local special circumstances: Nicaragua's economy has been facing challenges, leading investors to seek alternative investment opportunities. The political and economic instability in the region has prompted investors to turn to Precious Metal Derivatives as a safe haven asset. Moreover, the lack of developed local financial markets has encouraged investors to look towards international markets for investment options.

Underlying macroeconomic factors: The global economic landscape plays a significant role in shaping the Precious Metal Derivatives market in Nicaragua. Factors such as inflation, interest rates, and geopolitical tensions influence the prices of precious metals, impacting the demand for derivatives in the country. Additionally, the government's monetary policies and regulations also affect investor sentiment and participation in the 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.