Precious Metal Derivatives - Northern Africa

Northern Africa

The nominal value in the Precious Metal Derivatives market is projected to reach US$5.28bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.22% resulting in a projected total amount of US$5.61bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.01 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 472.30k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Northern Africa is experiencing a shift in dynamics driven by various factors.

Customer preferences: Investors in Northern Africa are increasingly turning to Precious Metal Derivatives as a way to diversify their investment portfolios and hedge against economic uncertainties. The allure of potentially high returns and the ability to trade without owning the physical assets are appealing to a growing number of market participants in the region.

Trends in the market: One notable trend in the Precious Metal Derivatives market in Northern Africa is the growing interest in gold derivatives. Gold has always been a popular choice for investors seeking a safe haven asset, especially during times of market volatility. The demand for gold derivatives is on the rise as investors look for ways to protect their wealth and capitalize on price movements in the precious metal market.

Local special circumstances: Political stability and regulatory environment play a significant role in shaping the Precious Metal Derivatives market in Northern Africa. Countries in the region with stable governments and well-established financial regulations tend to attract more investors and trading activities. Additionally, cultural attitudes towards investing in derivatives products can also impact the growth of the market in the region.

Underlying macroeconomic factors: The performance of the global economy and geopolitical events have a direct impact on the Precious Metal Derivatives market in Northern Africa. Economic indicators such as inflation rates, interest rates, and currency movements can influence the demand for precious metal derivatives as investors adjust their strategies to mitigate risks and maximize returns. Moreover, regional trade agreements and foreign investment inflows can also shape the landscape of the market in Northern Africa.

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.