Precious Metal Derivatives - Southern Africa

Southern Africa

The nominal value in the Precious Metal Derivatives market is projected to reach US$57.44bn in 2025.
It is expected to show an annual growth rate (CAGR 2025-2029) of 3.88% resulting in a projected total amount of US$66.89bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.41 in 2025.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$12,010.00bn in 2025).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 143.20k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Southern Africa is experiencing a notable shift in dynamics and growth patterns. Customer preferences in Southern Africa are increasingly leaning towards diversified investment portfolios that offer a hedge against inflation and economic uncertainties.

As a result, there is a growing interest in Precious Metal Derivatives as an alternative investment avenue due to their perceived stability and potential for high returns. Trends in the market indicate a rising demand for gold and silver derivatives in Southern Africa, driven by both individual investors and institutional players seeking exposure to these precious metals. The volatility in global financial markets and geopolitical tensions are also contributing to the uptick in trading activities within the region.

Local special circumstances, such as the presence of well-established financial markets in countries like South Africa, are facilitating the development of the Precious Metal Derivatives market in Southern Africa. Additionally, the region's strategic location as a hub for commodity trading and mining activities is attracting investors looking to capitalize on the precious metal market. Underlying macroeconomic factors, including currency fluctuations, interest rate movements, and overall economic stability, are playing a crucial role in shaping the Precious Metal Derivatives market in Southern Africa.

Investors are closely monitoring these factors to make informed decisions and manage risks effectively in their derivatives trading activities.

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.