Precious Metal Derivatives - Tanzania

Tanzania

The nominal value in the Precious Metal Derivatives market is projected to reach US$5.47bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.33% resulting in a projected total amount of US$6.76bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.56 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 11.63k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Precious Metal Derivatives market in Tanzania has been experiencing a notable shift in recent years, reflecting changing customer preferences and market dynamics.

Customer preferences: Investors in Tanzania are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against market volatility. The appeal of these derivatives lies in their potential for high returns and the opportunity to speculate on the price movements of precious metals without owning the physical assets.

Trends in the market: One significant trend in the Tanzanian Precious Metal Derivatives market is the growing interest from institutional investors, including pension funds and asset management companies. This influx of institutional capital has contributed to the deepening of the market and increased liquidity in derivative products.

Local special circumstances: One of the unique aspects of the Tanzanian market is the influence of local regulations and government policies on Precious Metal Derivatives trading. Regulatory changes and compliance requirements can impact the accessibility and attractiveness of these products to investors in the country.

Underlying macroeconomic factors: The development of the Precious Metal Derivatives market in Tanzania is also influenced by broader macroeconomic factors such as inflation, exchange rates, and global economic trends. Economic stability and growth prospects can drive investor confidence in derivatives trading, while currency fluctuations may impact the pricing of these products in the local market.

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.