Precious Metal Derivatives - Togo

The nominal value in the Precious Metal Derivatives market is projected to reach US$779.20m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.16% resulting in a projected total amount of US$1.00bn by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.00 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$11.92tn in 2024).
In the Precious Metal Derivatives market, the number of contracts is expected to amount to 533.40k by 2029.

Definition:

The Precious Metal Derivatives market refers to derivatives of precious metals such as gold or silver. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of gold, an investor could own a derivative of gold). Therefore, physical commodities are out of scope in this analysis.

Structure:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year), the average notional value per contract as well as the price data of popular specific derivatives of this category.

Additional information:

Examples of popular precious metal derivatives are gold, silver, or platinum.

Precious Metal Derivatives, e.g. Gold, Silver, Platinum

Physical precious metal commodities

The Precious Metal Derivatives market in Togo is experiencing a notable shift in recent years, reflecting global trends in the financial market. Customer preferences in Togo are increasingly leaning towards diversified investment options, including Precious Metal Derivatives.

Investors are seeking alternative ways to hedge against market volatility and diversify their portfolios beyond traditional asset classes. This growing interest in Precious Metal Derivatives is in line with the broader global trend of investors looking for safe-haven assets amid economic uncertainties. Trends in the market indicate a rising demand for Precious Metal Derivatives in Togo, driven by a combination of factors such as increasing awareness about financial instruments, evolving regulatory environment, and advancements in technology that make trading more accessible.

As more investors in Togo become familiar with the potential benefits of Precious Metal Derivatives, the market is witnessing a gradual but steady expansion. Local special circumstances, such as the limited availability of investment options in Togo's financial market, are also contributing to the growth of the Precious Metal Derivatives market. With relatively fewer sophisticated financial products available locally, investors are turning to derivatives linked to precious metals as a way to access global markets and diversify their investment portfolios.

Underlying macroeconomic factors, including inflation concerns, currency fluctuations, and geopolitical uncertainties, are further fueling the demand for Precious Metal Derivatives in Togo. Investors view these derivatives as a strategic tool to mitigate risks associated with traditional investments and capitalize on the potential price movements of precious metals in the global market. As the Precious Metal Derivatives market in Togo continues to evolve, market participants are expected to adapt to the changing landscape by offering innovative products and services that cater to the diverse needs of investors.

This adaptation to global market trends and local preferences will likely shape the future growth trajectory of the Precious Metal Derivatives market in Togo.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Precious metals have long been seen as a hedge against inflation and economic uncertainty. When stock markets are volatile or currencies devalue, investors flock to precious metals like gold and silver as a store of value, driving their prices up. Gold, in particular, stands out as the most popular choice for protecting wealth in times of uncertainty, with central banks around the world holding vast reserves to safeguard against currency fluctuations and political upheaval. Also, the demand for gold as an investment outweighs its demand for industrial uses - more so if we also consider owning jewelry as a form of investment. This pattern contrasts sharply to other precious metals. Silver, for instance, has a much stronger industrial demand, due to its use in sectors like electronics, solar panels, and medical equipment. Platinum follows a similar pattern, with industrial demand outpacing investment demand, due to the its many different end uses.