Precious Metal Derivatives - Northern Europe

Northern Europe

The nominal value in the Precious Metal Derivatives market is projected to reach US$218.20bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.98% resulting in a projected total amount of US$278.20bn 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 2.17m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Northern Europe is experiencing a steady growth trajectory driven by various factors. Customer preferences in Northern Europe are leaning towards hedging against market volatility and diversifying investment portfolios.

Investors are increasingly turning to Precious Metal Derivatives as a way to manage risk and safeguard their wealth in uncertain economic times. Trends in the market indicate a rising demand for Precious Metal Derivatives, particularly in countries like Sweden and Finland. This trend is fueled by the region's strong tradition of financial innovation and risk management.

Additionally, the growing popularity of sustainable investing is also driving interest in Precious Metal Derivatives linked to environmentally friendly practices. Local special circumstances, such as the presence of well-established financial institutions and a highly educated population, contribute to the development of the Precious Metal Derivatives market in Northern Europe. These factors create a conducive environment for sophisticated financial products and services to thrive, attracting both domestic and international investors.

Underlying macroeconomic factors, including low interest rates and geopolitical uncertainties, are also playing a significant role in shaping the Precious Metal Derivatives market in Northern Europe. As investors seek alternative assets with potentially higher returns, Precious Metal Derivatives offer a compelling investment opportunity in a low-yield environment. Moreover, the region's stable political landscape and strong regulatory framework provide a sense of security for market participants, further boosting confidence in Precious Metal Derivatives as a reliable investment option.

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.