Precious Metal Derivatives - Norway

Norway

The nominal value in the Precious Metal Derivatives market is projected to reach US$53.03bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.64% resulting in a projected total amount of US$69.76bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.09 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 615.20k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Norway has been experiencing a notable growth in recent years. Customer preferences in the Norwegian market for Precious Metal Derivatives are influenced by a combination of factors.

Investors in Norway tend to show a strong interest in diversifying their portfolios to include alternative investments like precious metal derivatives. Additionally, the appeal of these derivatives lies in their potential to act as a hedge against inflation and economic uncertainties, making them an attractive option for risk-averse investors in the country. Trends in the market indicate a growing demand for Precious Metal Derivatives among both retail and institutional investors in Norway.

The increasing popularity of these derivatives can be attributed to the overall bullish sentiment towards precious metals, driven by global economic conditions and geopolitical tensions. As a result, market participants in Norway are actively engaging in trading activities related to gold, silver, and other precious metals through derivatives. Local special circumstances in Norway, such as the country's strong economy and stable political environment, contribute to the growth of the Precious Metal Derivatives market.

The well-developed financial infrastructure and regulatory framework in Norway also play a crucial role in facilitating the trading of these derivatives. Moreover, the presence of sophisticated investors and financial institutions further boosts the liquidity and efficiency of the market for Precious Metal Derivatives in the country. Underlying macroeconomic factors, including interest rates, inflation expectations, and currency movements, have a significant impact on the Precious Metal Derivatives market in Norway.

As investors seek safe-haven assets amid global uncertainties, the demand for precious metal derivatives is likely to remain robust. Additionally, any shifts in monetary policy or changes in geopolitical dynamics can influence the performance of these derivatives in the Norwegian 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.