Precious Metal Derivatives - Spain

Spain

The nominal value in the Precious Metal Derivatives market is projected to reach US$183.30bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 3.60% resulting in a projected total amount of US$218.80bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.09 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 2.04m by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Spain has shown a significant increase in activity and interest in recent years.

Customer preferences: Investors in Spain have shown a growing interest in diversifying their portfolios by including Precious Metal Derivatives. This is driven by the desire to hedge against inflation and economic uncertainties, as well as to take advantage of potential price appreciation in the precious metals market.

Trends in the market: One of the notable trends in the Precious Metal Derivatives market in Spain is the increasing adoption of online trading platforms. This trend has made it easier for retail investors to access and trade these derivatives, thus contributing to the overall growth of the market. Additionally, there has been a rise in demand for innovative derivative products that offer exposure to a basket of precious metals, catering to investors looking for diversified investment options.

Local special circumstances: Spain's rich history in precious metal mining and jewelry making has contributed to a cultural affinity towards gold and silver. This cultural connection to precious metals has translated into a strong interest in Precious Metal Derivatives among Spanish investors. Furthermore, the presence of established financial institutions and a well-developed regulatory framework has provided a conducive environment for the growth of the derivatives market in the country.

Underlying macroeconomic factors: The economic stability and growth in Spain have played a crucial role in driving the demand for Precious Metal Derivatives. In times of economic uncertainty, investors often turn to safe-haven assets like gold and silver, leading to increased trading activity in precious metal derivatives. Additionally, the low-interest-rate environment in Spain has made alternative investments like precious metal derivatives more attractive to investors seeking higher returns.

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.