Precious Metal Derivatives - Puerto Rico

Puerto Rico

The nominal value in the Precious Metal Derivatives market is projected to reach US$13.76bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.52% resulting in a projected total amount of US$18.00bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.08 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 182.30k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Puerto Rico is experiencing a notable shift in customer preferences, trends, and local special circumstances.

Customer preferences: Investors in Puerto Rico 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 needing to physically own the metals are driving this shift in customer preferences.

Trends in the market: One prominent trend in the Precious Metal Derivatives market in Puerto Rico is the growing popularity of gold and silver contracts. Investors are drawn to these metals due to their status as safe-haven assets during times of economic uncertainty. Additionally, there is a rising demand for more innovative derivative products that allow for leveraged trading and speculation on price movements.

Local special circumstances: Puerto Rico's unique position as a territory with U. S. jurisdiction influences its Precious Metal Derivatives market. The market benefits from access to U. S. financial markets and regulatory frameworks, providing a sense of stability and security for investors. However, the local economic conditions and tax incentives also play a role in shaping the dynamics of the derivatives market.

Underlying macroeconomic factors: The Precious Metal Derivatives market in Puerto Rico is influenced by global economic trends, such as interest rates, inflation, and geopolitical events. As the Federal Reserve adjusts its monetary policy, it impacts the prices of precious metals and, in turn, the derivatives market in Puerto Rico. Moreover, the island's economic recovery efforts and fiscal policies can create fluctuations in investor sentiment and trading activity in the 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.