The gold market still has plenty of growth potential as micro accounts attract retail investors

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The gold market still has plenty of growth potential as micro accounts attract retail investors
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(Kitco News) - The gold market is just starting to tap into its full investment potential as the CME micro futures contracts continue to lower the entry point for smaller retail investors.

In a recent interview with Kitco News, Jin Hennig - managing director and global head of metals at the CME, said that accessibility has created new growth opportunities for the gold market as investors look for alternatives to hedge against inflation and geopolitical uncertainty.

According to trade data, the CME said that its micro gold futures have seen average annual volume growth of 58% since the contracts were launched a decade ago, while micro silver futures have seen volumes increase 93%. Along with smaller accounts, the CME notes that investors are also managing risks and precious metals exposure through options. The October trade data shows that the average daily volume across the precious metals has increased 29% compared to last year.

Looking at the silver market, which has struggled to keep pace with gold, the precious metal has seen the average daily volume in its options increase 48% compared to October 2022.

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