Precious Metal Derivatives - Zambia

Zambia

The nominal value in the Precious Metal Derivatives market is projected to reach US$2,951.00m in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.50% resulting in a projected total amount of US$3,857.00m by 2029.
The average price per contract in the Precious Metal Derivatives market amounts to US$0.34 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 10.39k by 2029.

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Analyst Opinion

The Precious Metal Derivatives market in Zambia is experiencing a notable shift in recent years.

Customer preferences: Investors in Zambia are increasingly turning to Precious Metal Derivatives as a way to diversify their portfolios and hedge against economic uncertainties. The allure of potentially high returns coupled with the security of precious metals is driving more market participants towards these financial instruments.

Trends in the market: One of the key trends in the Precious Metal Derivatives market in Zambia is the growing demand for gold and silver contracts. As global economic volatility persists, investors are seeking safe-haven assets, leading to a surge in trading volumes for these commodities. Additionally, the introduction of innovative derivative products tailored to the Zambian market is further fueling this trend.

Local special circumstances: Zambia's rich mining heritage plays a significant role in shaping the Precious Metal Derivatives market in the country. With a strong foundation in the mining sector, Zambian investors have a unique affinity towards precious metals, making them more inclined to participate in derivative trading linked to these commodities. This local specialization creates a conducive environment for the growth of the Precious Metal Derivatives market in Zambia.

Underlying macroeconomic factors: The stability of the Zambian economy and favorable regulatory environment are bolstering the development of the Precious Metal Derivatives market. As the country continues to attract foreign investment and diversify its financial sector, the demand for derivative products, especially those linked to precious metals, is expected to rise. Additionally, the government's efforts to promote capital market growth and financial inclusion are further propelling the expansion of the derivatives market in Zambia.

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.