Precious Metal Derivatives - Paraguay

Paraguay

The nominal value in the Precious Metal Derivatives market is projected to reach US$154.40m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.48% resulting in a projected total amount of US$183.20m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.00 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 236.00k by 2029.

Market

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Analyst Opinion

Amidst the growing interest in alternative investments, the Precious Metal Derivatives market in Paraguay is experiencing notable developments. Customer preferences in Paraguay are shifting towards diversifying investment portfolios beyond traditional options, such as stocks and bonds.

Investors are increasingly looking for ways to hedge against economic uncertainties and inflation, leading to a rising demand for Precious Metal Derivatives. Trends in the market indicate a gradual but steady increase in participation from retail investors, as well as institutional players, looking to capitalize on the potential benefits of Precious Metal Derivatives. This trend is further fueled by the accessibility of online trading platforms, which have made it easier for a wider range of investors to enter the market.

Local special circumstances, such as the country's stable political environment and relatively low inflation rates, are contributing to a favorable investment climate for Precious Metal Derivatives in Paraguay. Additionally, the lack of a well-developed domestic stock market has prompted investors to explore alternative investment options, including derivatives linked to precious metals. Underlying macroeconomic factors, such as global economic conditions and fluctuations in commodity prices, play a significant role in shaping the Precious Metal Derivatives market in Paraguay.

As international trade dynamics evolve and geopolitical tensions impact financial markets, investors in Paraguay are increasingly turning to Precious Metal Derivatives as a safe haven asset to protect their wealth.

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.