Precious Metal Derivatives - Pakistan

Pakistan

The nominal value in the Precious Metal Derivatives market is projected to reach US$1,494.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.17% resulting in a projected total amount of US$1,922.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.04 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 41.05k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Pakistan is showing a steady growth trajectory, driven by evolving customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Investors in Pakistan are increasingly turning to Precious Metal Derivatives as a way to diversify their investment portfolios and hedge against market volatility. With a growing interest in alternative investment options, Precious Metal Derivatives offer a convenient and accessible way to participate in the commodities market without directly owning physical assets.

Trends in the market: One noticeable trend in the Precious Metal Derivatives market in Pakistan is the increasing demand for gold derivatives. Gold has always been a popular choice for investors in the country due to its perceived stability and value retention during economic uncertainties. As a result, gold derivatives are gaining traction among both retail and institutional investors looking to capitalize on price movements in the precious metal market.

Local special circumstances: Pakistan's geopolitical and economic landscape plays a significant role in shaping the Precious Metal Derivatives market. The country's strategic location, along with its growing population and expanding middle class, contributes to the overall demand for alternative investment products like Precious Metal Derivatives. Additionally, regulatory developments and government policies regarding commodity trading also influence the market dynamics in Pakistan.

Underlying macroeconomic factors: The performance of the global economy, particularly in key markets like the US and China, has a direct impact on the Precious Metal Derivatives market in Pakistan. Economic indicators, geopolitical events, and currency fluctuations all play a part in shaping investor sentiment and driving trading activity in the derivatives market. As investors seek safe-haven assets during times of uncertainty, the demand for precious metal derivatives is expected to remain robust in Pakistan.

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.