Precious Metal Derivatives - Russia

The nominal value in the Precious Metal Derivatives market is projected to reach US$185.60bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.85% resulting in a projected total amount of US$193.60bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.06 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$11.92tn in 2024).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 4.44m by 2029.

Definition:

The Precious Metal Derivatives market refers to derivatives of precious metals such as gold or silver. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of gold, an investor could own a derivative of gold). Therefore, physical commodities are out of scope in this analysis.

Structure:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year), the average notional value per contract as well as the price data of popular specific derivatives of this category.

Additional information:

Examples of popular precious metal derivatives are gold, silver, or platinum.

Precious Metal Derivatives, e.g. Gold, Silver, Platinum

Physical precious metal commodities

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

Customer preferences: Investors in Russia 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 coupled with the ability to trade these derivatives easily on various platforms is driving more customers to participate in this market.

Trends in the market: One prominent trend in the Precious Metal Derivatives market in Russia is the growing demand for gold and silver derivatives. These two metals have always been popular choices for investors seeking safe-haven assets, especially during times of economic uncertainty. As geopolitical tensions rise and inflation concerns persist, the appeal of gold and silver derivatives continues to strengthen in the Russian market.

Local special circumstances: Russia's rich history of mining and trading precious metals plays a significant role in shaping the Precious Metal Derivatives market in the country. The presence of major mining companies and the government's focus on developing the mining sector contribute to a deep-rooted interest in precious metal investments among Russian investors. Additionally, the cultural affinity towards gold as a symbol of wealth and prosperity further drives the demand for gold derivatives in the market.

Underlying macroeconomic factors: The performance of the Russian economy, global geopolitical events, and fluctuations in currency exchange rates all influence the Precious Metal Derivatives market in Russia. Economic indicators such as GDP growth, inflation rates, and interest rates play a crucial role in shaping investor sentiment and decision-making regarding precious metal investments. Moreover, government policies and regulations regarding the derivatives market also impact the overall dynamics of precious metal trading in Russia.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Precious metals have long been seen as a hedge against inflation and economic uncertainty. When stock markets are volatile or currencies devalue, investors flock to precious metals like gold and silver as a store of value, driving their prices up. Gold, in particular, stands out as the most popular choice for protecting wealth in times of uncertainty, with central banks around the world holding vast reserves to safeguard against currency fluctuations and political upheaval. Also, the demand for gold as an investment outweighs its demand for industrial uses - more so if we also consider owning jewelry as a form of investment. This pattern contrasts sharply to other precious metals. Silver, for instance, has a much stronger industrial demand, due to its use in sectors like electronics, solar panels, and medical equipment. Platinum follows a similar pattern, with industrial demand outpacing investment demand, due to the its many different end uses.