Precious Metals Market Analysis

Global Precious Metals Market Overview

Precious Metals Market Size was valued at USD 205.2 Billion in 2023. The Precious Metals industry is projected to grow from USD 221.62 Billion in 2024 to USD 379.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.97% during the forecast period (2024 - 2032). Rising demand for precious metals in the aircraft industry, as well as rising demand for precious metals in the jeweler business is the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Precious Metals Market Trends

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  The growing demand for precious metals in the electronics industry propels market growth.

  
  

Market CAGR for Precious Metals is being driven by the precious metals market is expanding rapidly as a result of rising demand for precious metals in the electronics industry. Gold, silver, platinum and palladium are precious metals used in the production of electronic components such as circuit boards, contacts, and connectors. The growing demand for electronic devices such as smartphones, tablets, laptop computers, and wearables is fueling the rise of the electronics industry, which is boosting the need for precious metals. Because of its superior conductivity and corrosion resistance, gold is the most often utilized precious metal in the electronics sector. Because of its strong electrical conductivity, silver is also commonly utilized in electronic components. Platinum and palladium are used in the production of catalytic converters, which are necessary in automobiles to meet emissions requirements.

The expanding demands for electronic products, as well as the developing trend of automation and digitization in numerous industries, are likely to drive the expansion of the electronics industry in the future years. This is predicted to raise demand for precious metals in the electronics industry, which will fuel the precious metals market's growth. As a result, the precious metals industry is likely to increase rapidly in the future years.

Additionally, the growing demand for precious metals as a safe haven investment. Gold, silver, and platinum are frequently employed as a hedge against inflation, currency volatility, and economic uncertainty. Investors tend to move their investments to safe haven assets such as precious metals during times of economic insecurity or geopolitical unrest. Because of its historical importance as a store of wealth and its perceived stability during times of economic instability, gold is the most popular safe haven asset. Silver and platinum, to a lesser extent than gold, are also used as safe haven investments. Due to economic and geopolitical concerns, the demand for safe haven assets is projected to remain in the coming years. This is likely to stimulate demand for precious metals as a safe haven investment, which will fuel the precious metals market's growth. As a result, the precious metals industry is likely to increase rapidly in the future years.

September 2024: The UK-based Company Cooksongold, widely known as the developer of products made of precious metals, started launching a new industrial division which is called Cookson Industrial, with the intention of leading the use of cash for a variety of demanding applications through additive manufacturing. Cooksowngold is a division under HM Precious Metals, Cookson Industrial will be a self-contained unit that offers services from consultation and research to design, development and eventually production. This involves normal processes and subtractive on top of additive which will all be coordinated from the Birmingham headquarters and production plant. The utilization of AM introduced possibilities for organizations that require the production of performance parts in more demanding environments where the traditional alloys could not satisfy heating and material application requirements. Cookson Industrial seeks to assist institutions in de-risking their invention, making their logistic chains less tedious and cutting on the time to release products into the market.

Precious Metals Market Segment Insights

Precious Metals Type Insights

The Precious Metals Market segmentation, based on type includes gold, silver, and platinum. The gold segment has the biggest market share. Gold is the most frequently utilized precious metal in jewellery, investment, and industrial applications. It is also regarded as a safe haven asset during times of economic instability, which adds to its desirability as an investment. Economic conditions, inflation, and geopolitical events all influence the demand for gold. Gold has the biggest market share in the precious metals industry due to its high demand and worth.

Figure1: Precious Metals Market, by Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Precious Metals Application Insights

The Precious Metals Market segmentation, based on Application, includes jewelry, investments in semiconductors, dentistry, computer parts, cutlery, photography and others. The jewellery market is one of the largest in the precious metals market. Because of their beauty, rarity, and durability, precious metals such as gold, silver, and platinum are commonly utilized in the manufacture of jewellery. The jewellery industry is influenced by variables such as shifting fashion trends, cultural traditions, and economic conditions. Income levels, consumer tastes, and marketing activities all influence jewellery demand. The jewellery segment is one of the most important in the precious metals market due to its high demand and worth.

Precious Metals End-User Insights

The Precious Metals Market segmentation, based on end-user, includes electronics, medical, automotive, aerospace, oil and gas and others. Among the segments, the electronic sub-segment of the precious metals industry has the highest market growth. This is due to the semiconductor sector, a sub-section of the electronic industry, being the fastest-growing segment in the precious metals market at the moment. The electronic industry's need for precious metals is being driven by reasons such as rising demand for electronic devices, increased investments in artificial intelligence and the Internet of Things (IoT), and the development of new technologies such as 5G. The use of precious metals in electronic devices is likely to increase in the future years, creating a huge growth opportunity in the precious metals market.

Precious Metals Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Precious Metals Market area will dominate this market, because of the presence of huge mining firms. Some of the world's top precious metals mining corporations, including Newmont, Barrick Gold, and Freeport-McMoRan, are headquartered in the region. These firms have major activities in the region and contribute to overall precious metal production. Large North American mining firms have access to new technology and equipment that allow them to extract precious metals more efficiently and cost-effectively. This, in turn, makes North America a more appealing place for precious metals mining, contributing to the region's market domination.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: PRECIOUS METALS MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Precious Metals Market accounts for the second-largest market share because of the region's high demand for precious metals. Further, the German Precious Metals Market held the largest market share, and the UK Precious Metals Market was the fastest growing market in the European region

The Asia-Pacific Precious Metals Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because of the region's increased precious metal production; growing precious metal production has led to its position as the third-largest market.  Moreover, China’s Precious Metals Market held the largest market share, and the Indian Precious Metals Market was the fastest growing market in the Asia-Pacific region.

Precious Metals Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the  Metals Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Precious Metals industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Precious Metals industry to benefit clients and increase the market sector. In recent years, the Precious Metals industry has offered some of the most significant advantages to medicine. Major players in the Precious Metals Market, including GOLDCORP INC. (Canada), Kinross Gold Corporation (Canada), Lonmin Plc (South Africa), Newmont Mining Corporation. (US), Russian Platinum (Russia) and others, are attempting to increase market demand by investing in research and development operations.

Barrick Gold Corporation is a gold and copper mining business with 16 active locations in 13 countries. Its headquarters are located in Toronto, Ontario, Canada. It operates mines in Argentina, Canada, Chile, Cote d'Ivoire, the Democratic Republic of the Congo, the Dominican Republic, Mali, Papua New Guinea, Saudi Arabia, Tanzania, the United States, and Zambia. In 2019, it produced 5.5 million ounces of gold at $894/ounce all-in sustaining costs and 432 million pounds of copper at $2.52/pound all-in sustaining costs. The company had 71 million ounces of proved and probable gold reserves as of December 31, 2019. In 2021, Barrick Gold, a leading gold mining firm, has established a collaboration with Ma'aden, a Saudi mining business, to develop copper reserves in Saudi Arabia. The collaboration was an important step for Barrick Gold in expanding its operations in the Middle East and diversifying its portfolio beyond gold.

Invesco Ltd. is an American independent investment management firm based in Atlanta, Georgia, with branch offices in 20 countries. Its common stock is included in the S&P 500 and is traded on the New York Stock Exchange.  Invesco's brand names include Invesco, Trimark, Invesco Perpetual, WL Ross & Co, and Power shares. In 1978, Citizens & Southern National Bank unloaded its money management operations, resulting in the formation of Invesco (then legally spelt with all-capital letters: INVESCO). The company was purchased in 1988 by the British firm Britannia Arrow, based in London, and was later renamed INVESCO. INVESCO PLC merged with AIM Investments 1997. In 2020, Invesco, a financial services firm, has introduced a physical gold exchange-traded fund (ETF) in Europe. The ETF was created to give investors exposure to physical gold while also providing a low-cost alternative to invest in the precious metal. The introduction of the physical gold ETF was a big step forward in the business, as it addressed the growing demand for gold investments as well as the need for more diverse investment options.

Key Companies in the Precious Metals market include

• Hycroft Mining Corporation (US),


• Anglo American (UK),


• Barrick Gold Corporation (Canada),


• Freeport-McMoRan (US),


• GOLDCORP INC. (Canada),


• Kinross Gold Corporation (Canada),


• Lonmin Plc (South Africa),


• Newmont Mining Corporation. (US),


• Russian Platinum (Russia),


• Norilsk Nickel (Russia),


• PAN AMERICAN SILVER. (Canada),


• Asahi Refining (US), and


• Sumitomo Metal Mining Co., Ltd. (Japan)

Precious Metals Industry Developments

In September 2019, Stillwater Mining firm, a leading producer of palladium and platinum in the United States, was acquired by Sibanye-Stillwater, a South African mining firm. Sibanye-Stillwater made a big acquisition to extend its footprint in the precious metals market and diversify its portfolio.

In October 2020, IBM and Mine Hub Technologies collaborated to bring blockchain technology to the precious metals sector. The system was created to promote transparency and efficiency in the precious metals supply chain. The collaboration was an important advance in the industry since it addressed the difficulties of traceability and responsible precious metal sourcing.

In November 2020, Valcambi, a Swiss precious metals refining company, has announced an increase in gold refining capacity. The expansion was initiated in response to rising demand for gold. The corporation spent money on new technology to improve its refining process and expand its manufacturing capacity.

July 2024: Quantum Metal Bullion (QMB) PTY LTD Australia bursts onto the bullion-based technology stage with the official launch of the Quantum Metal Gold Token ($QMGT) project. With its partner Quantum Metal Digital Solutions Inc., QMB applies proprietary technology and corporate innovation to serve people and businesses in the precious metals sector. Indeed, Quantum Metal Digital Solutions Inc. (QMDSI), as one of the leaders in blockchain technology development, is bringing new changes to the industry. To facilitate the new project, $QMGT provides a straightforward approach to owning, trading, and leveraging gold assets that are secured by blockchain systems for transparency, robustness and efficiency. Within the core ideas of Web3, the goal of this initiative is to develop a marketplace for precious metals and a frictionless decentralized finance platform, which will enable users to easily and smoothly convert their spending/purchases into gold, thus augmenting the model of the existing Quantum Metal Bullion (QMB) global community.

Precious Metals Market Segmentation

Precious Metals Market By Type Outlook

• Gold


• Silver


• Platinum

Precious Metals Market By Application Outlook

• Jewellery


• Investments


• Semiconductors


• Dentistry


• Computer parts


• Cutlery


• Photography


• Others

Precious Metals Market By End-User Outlook

• Electronics


• Medical


• Automotive


• Aerospace


• Oil and gas


• Others

Precious Metals Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America