Precious Metals Market Is Estimated To Witness High Growth Owing To Rising Industrial Applications

The precious metals market is estimated to be valued at US$ 305.45 Bn in 2024 and is expected to exhibit a CAGR of 7% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights’The precious metals market is primarily driven by the rising industrial applications of precious metals such as gold, silver, platinum, and palladium.

Gold finds widespread usage in the jewelry industry. It is also used in the manufacturing of electronics and connectors owing to its excellent conductivity. Silver is used as a catalyst in the manufacturing of automobile catalytic converters. Growing automotive industry globally is fueling the demand for silver. Moreover, platinum and palladium are mainly used in the automobile industry for making exhausts systems in cars. Thus, rising automobile production across the globe is positively impacting the growth of the precious metals market.

Key Market Trends: Growing adoption of gold as an investment avenue and rising demand for silver in the photovoltaic industry are the major trends witnessed in the precious metals market. Investors across the globe consider gold as a reliable and secure investment asset. Central banks of different countries are buying gold in large quantities to diversify their foreign exchange reserves. Moreover, the demand for silver is increasing from the photovoltaic industry on account of its excellent reflective properties. Around 10 grams of silver is used to manufacture average size solar panels. Thus, the burgeoning solar energy sector is creating significant opportunities for the growth of the silver market.

Precious Metals Market Opportunities: The gold segment held the largest market share of over 45% in the precious metals market in 2019. Gold has widespread applications in jewelry, investments and technology. It is highly valued for its resistance to corrosion and stable value. The demand for gold from the jewelry sector is expected to remain strong driven by the growing economies of Asia Pacific and the increasing purchasing power of consumers in the region.

The jewelry segment accounted for nearly 50% of the total precious metals market in 2019. Precious metals especially gold have been an integral part of jewelry since ancient times. Gold is highly favored for its aesthetic beauty, malleability and resistance to corrosion. The demand for gold jewelry is projected to grow in the coming years driven by rising disposable incomes, changing fashion trends and increasing acceptance of modern jewelry styles across regions. Asia Pacific being a major consumer is anticipated to propel the jewelry application segment.

Key Market Takeaways: The precious metals market size was valued at USD 305.45 Bn in 2024 and is anticipated to witness a CAGR of 7% during the forecast period 2024-2031. Technological advancements enabling new applications and growing industrialization are key factors driving market growth.

On the basis of metal type, the gold segment is expected to hold a dominant position owing to widespread adoption in jewelry and investments for its beauty and stable value.

By application, the jewelry segment will remain the major revenue generator due to the indispensable role of precious metals especially gold in adornment and deep-rooted culture and traditions across regions.

Regionally, North America is expected to dominate the precious metals market over the forecast period due to strong presence of mining companies and developing electric vehicles sector boosting platinum demand.

Competitor Insights: Some of the major players operating in the precious metals market include Royal Gold Inc., Fresnillo Plc, Northern Star Resources, Agnico Eagle Mines and Barrick Gold Corporation. Consolidation activities among players are expected to intensify competition.

Recent Developments: Heading into 2023-2024, many of these risks remain that could continue to provide underlying support for gold and silver prices. While inflation has shown signs of peaking in many countries, it remains elevated globally. Interest rates are also expected to continue rising in most major economies as central banks battle to bring prices under control. Additionally, the war in Eastern Europe drags on without an immediate resolution in sight. Geopolitical tensions involving China and Taiwan also simmer. This backdrop of economic uncertainty and instability on the international stage bodes well for continued demand of precious metals as a store of value and hedge. More information in full report.