Precious Metal Derivatives - Argentina

  • Argentina
  • The nominal value in the Precious Metal Derivatives market market of Argentina is forecasted to reach US$61.84bn in 2024.
  • It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 4.48% resulting in a projected total amount of US$73.68bn by 2028.
  • The average price per contract in the Precious Metal Derivatives market market of Argentina stands at US$0.10 in 2024.
  • When compared globally, the in the United States reaches the highest nominal value (US$19,920.00bn in 2024).
  • In the Precious Metal Derivatives market market of Argentina, the number of contracts is expected to reach 641.50k by 2028.
  • Argentina's growing interest in Precious Metal Derivatives reflects a hedging strategy amidst economic uncertainties in the commodities market.
 
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Analyst Opinion

The Precious Metal Derivatives market in Argentina is experiencing a shift in customer preferences towards more diverse and sophisticated investment options.

Customer preferences:
Argentinian investors are increasingly turning to Precious Metal Derivatives as a way to hedge against volatility in traditional financial markets and protect their portfolios from economic uncertainties. The flexibility and potential for high returns offered by these derivatives are attracting a growing number of investors looking to diversify their investment strategies.

Trends in the market:
One noticeable trend in the Precious Metal Derivatives market in Argentina is the rising demand for gold and silver derivatives. As global economic conditions remain uncertain, investors are seeking safe-haven assets like gold and silver, driving up the trading volume of derivatives linked to these precious metals. Additionally, the introduction of new derivative products tailored to the preferences of local investors is further fueling the market growth.

Local special circumstances:
Argentina's history of economic instability and high inflation rates have made Precious Metal Derivatives an attractive investment option for both retail and institutional investors. The ability to trade these derivatives without the need for physical ownership of the underlying assets provides a convenient way for investors to participate in the precious metals market without being exposed to the risks associated with holding physical commodities.

Underlying macroeconomic factors:
The macroeconomic landscape in Argentina, characterized by currency depreciation and fluctuating interest rates, is driving investors to seek alternative investment opportunities such as Precious Metal Derivatives. The potential for capital appreciation and portfolio diversification offered by these derivatives align with the investment objectives of many Argentinian investors looking to safeguard their wealth in times of economic uncertainty.

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.

Overview

  • Value Development
  • Volume
  • Analyst Opinion
  • Methodology
  • Key Market Indicators
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