Precious Metal Derivatives - Singapore

Singapore

The nominal value in the Precious Metal Derivatives market is projected to reach US$52.74bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 1.18% resulting in a projected total amount of US$55.93bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.13 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 418.90k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Singapore has been experiencing significant growth and development in recent years.

Customer preferences: Investors in Singapore have shown a growing interest in diversifying their investment portfolios, leading to an increased demand for Precious Metal Derivatives. With a strong culture of financial literacy and a preference for alternative investments, Singaporean investors are increasingly turning to Precious Metal Derivatives as a way to hedge against market volatility and inflation.

Trends in the market: One of the key trends in the Precious Metal Derivatives market in Singapore is the growing popularity of gold and silver derivatives. These two precious metals have always been considered safe-haven assets, especially during times of economic uncertainty. As a result, investors in Singapore are actively trading gold and silver derivatives as part of their risk management strategies. Additionally, the introduction of innovative derivative products, such as options and futures contracts, has further fueled the growth of the market.

Local special circumstances: Singapore's strategic location as a financial hub in Asia has played a significant role in the development of the Precious Metal Derivatives market. The country's well-established regulatory framework, political stability, and strong infrastructure have attracted both domestic and international investors to participate in the market. Furthermore, Singapore's reputation for transparency and efficiency has made it an attractive destination for trading Precious Metal Derivatives.

Underlying macroeconomic factors: The growth of the Precious Metal Derivatives market in Singapore can also be attributed to underlying macroeconomic factors. Factors such as low interest rates, global geopolitical tensions, and currency fluctuations have increased the appeal of Precious Metal Derivatives as a store of value and a hedge against economic risks. As investors seek ways to protect their wealth and capitalize on market opportunities, the demand for Precious Metal Derivatives in Singapore is expected to continue growing.

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.