Precious Metal Derivatives - Panama

Panama

The nominal value in the Precious Metal Derivatives market is projected to reach US$8.39bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.55% resulting in a projected total amount of US$10.99bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.54 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 18.67k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Panama is experiencing a notable surge in interest and activity.

Customer preferences: Investors in Panama are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. The allure of potential high returns and the ability to trade without physically owning the underlying assets are driving this shift in customer preferences.

Trends in the market: One key trend in the Panama Precious Metal Derivatives market is the growing number of retail investors participating in trading activities. This trend is fueled by the accessibility of online trading platforms and the desire of individuals to take more control over their investments. Additionally, there is a noticeable increase in the demand for derivative products linked to a variety of precious metals, reflecting a broader interest in this asset class among investors in Panama.

Local special circumstances: Panama's strategic geographic location and status as a major financial hub in Central America play a significant role in shaping the Precious Metal Derivatives market in the country. The presence of a well-established financial services sector and a growing number of international investors seeking opportunities in the region contribute to the development of a vibrant derivatives market in Panama.

Underlying macroeconomic factors: The stability of Panama's economy, characterized by steady economic growth and low inflation rates, provides a favorable environment for investors looking to engage in derivatives trading. Additionally, the government's pro-business policies and efforts to attract foreign investment further support the growth of the Precious Metal Derivatives market in the country.

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.