Precious Metal Derivatives - Southeast Asia

Southeast Asia

The nominal value in the Precious Metal Derivatives market is projected to reach US$264.40bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.27% resulting in a projected total amount of US$310.50bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.02 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 15.81m by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Southeast Asia is experiencing a notable uptrend in recent years. Customer preferences in the region are shifting towards alternative investment options like precious metal derivatives due to their perceived stability and potential for high returns compared to traditional financial instruments.

Investors are increasingly diversifying their portfolios to include these derivatives as a hedge against market volatility and economic uncertainties. Trends in the market show a growing demand for gold and silver derivatives in countries like Singapore and Malaysia, where the precious metal market has a strong presence. The increasing interest in these derivatives is also fueled by the growing popularity of online trading platforms, making it easier for retail investors to access and trade in these markets.

Local special circumstances, such as the cultural affinity towards gold in countries like Thailand and Indonesia, further drive the demand for precious metal derivatives. Gold holds symbolic and cultural significance in many Southeast Asian societies, leading to a sustained interest in gold-based financial products. Underlying macroeconomic factors, including geopolitical tensions and currency fluctuations in the region, contribute to the attractiveness of precious metal derivatives as a safe haven asset.

Investors view these derivatives as a way to protect their wealth during times of economic instability and geopolitical risks, further boosting the demand for such instruments in Southeast Asia.

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.