Precious Metal Derivatives - North America

North America

The nominal value in the Precious Metal Derivatives market is projected to reach US$12.42tn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.49% resulting in a projected total amount of US$13.37tn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.11 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 126.00m by 2029.

Market

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Analyst Opinion

The Precious Metal Derivatives market in North America is experiencing a significant growth trajectory driven by various factors. Customer preferences in North America for Precious Metal Derivatives are influenced by a combination of factors such as risk management strategies, portfolio diversification, and hedging against inflation.

Investors in the region tend to seek exposure to gold, silver, platinum, and palladium derivatives to protect their portfolios from market volatility and economic uncertainties. Trends in the market show an increasing demand for Precious Metal Derivatives in North America, particularly in the United States and Canada. The growing popularity of exchange-traded funds (ETFs) backed by precious metals and the rise of online trading platforms have made it easier for retail investors to access these derivatives.

Additionally, the development of innovative derivative products tailored to different risk appetites and investment objectives has attracted a broader investor base in the region. Local special circumstances, such as the strong regulatory framework and well-established financial infrastructure in North America, have created a conducive environment for the growth of the Precious Metal Derivatives market. The presence of major financial institutions, commodity exchanges, and clearing houses in the region has facilitated liquidity and price discovery in the derivatives market, making it attractive for both institutional and retail investors.

Underlying macroeconomic factors, including interest rates, inflation expectations, and geopolitical uncertainties, play a crucial role in shaping the demand for Precious Metal Derivatives in North America. Economic indicators and policy decisions by central banks can influence investor sentiment towards precious metals as a safe-haven asset, driving trading activities in the derivatives market. Additionally, fluctuations in currency values and global trade dynamics can impact the prices of precious metals, thereby affecting derivative contracts linked to these commodities.

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.