Precious Metal Derivatives - Senegal

The nominal value in the Precious Metal Derivatives market is projected to reach US$124.40m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.77% resulting in a projected total amount of US$157.10m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.25 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 504.20 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 Senegal is experiencing a notable increase in interest and activity.

Customer preferences: Investors in Senegal are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. The allure of potentially high returns coupled with the relative ease of trading these financial instruments is attracting a growing number of investors in the country.

Trends in the market: One of the key trends in the Precious Metal Derivatives market in Senegal is the growing popularity of gold derivatives. Gold has always been a traditional safe-haven asset, and in times of economic uncertainty, its appeal only grows stronger. As Senegal navigates through various economic challenges, investors are seeking the stability and security that gold derivatives can offer.

Local special circumstances: Senegal's strategic location in West Africa positions it as a key player in the regional economy. The country's stable political environment and efforts to promote economic growth are fostering a favorable investment climate. This, in turn, is fueling the demand for Precious Metal Derivatives as investors look for opportunities to capitalize on the country's economic potential.

Underlying macroeconomic factors: Senegal's macroeconomic stability and steady GDP growth are providing a solid foundation for the development of the Precious Metal Derivatives market. The government's commitment to economic reforms and infrastructure development is instilling confidence in investors, driving interest in financial instruments linked to precious metals. Additionally, Senegal's participation in regional economic initiatives is further enhancing its position as a hub for financial activities, including the trading of Precious Metal Derivatives.

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.