Precious Metal Market

Precious Metal Market Size (2024-2029):

The Precious Metal size is valued at USD 210.2 Billion in 2023 and is anticipated to reach USD 365.23 Billion by 2029 in the forecast period 2024-2029.

Market Overview:

Precious metals are rare metals that have high economic value due to several reasons, such as scarcity and usage in industrial processes. The most popular precious metals are gold, platinum, and silver. Precious metals are rare products that investors have valued. In historical periods, precious metals were used as the basis for money. Investments in precious metals are increasing as some metals are being used in advanced electronics. There are various precious metals besides gold, silver, and platinum, but investing in them is risky due to a lack of prominent application and liquidity. In recent years, precious metals have played a crucial role in the global economy as many currencies were minted physically using precious metals. Today, investors are buying precious metals as financial assets. 

Market Drivers:

The demand for precious metals is enormous in the jewelry application, which drives the global precious metals market growth and is expected to emerge as a prominent factor for the market expansion over the forecast period. Gold is in massive demand in Asia, mainly in countries such as India and China, where gold is incorporated into jewelry and ornaments. Gold and silver are in high demand in the wedding ceremonies in the Southeast Asian countries. Increasing disposable incomes of people across the world and changing lifestyle patterns are also influencing market growth. People are serious about the economic status as precious metals like gold and platinum are considered a growing demand for precious metals in the electronics industry, which is expected to propel market growth during the forecast period. Precious metals such as gold, silver, silver, platinum, and palladium are in high demand in the electronics industry to produce components like circuit boards, contacts, and connectors. 

The growing demand for electronic products across the globe, such as smartphones, laptops, wearables, and others, is driving the demand for precious metals in the electronic industry. One of the significant driving factors increasing the demand for precious metals is fear of inflation. People are in high fear regarding the increase in the prices of goods and products in the upcoming years, which is influencing them to purchase the essentials beforehand, which is expected to increase the financial stability of the people. During times of high inflation, people need to spend longer getting the best deals for product purchases. Inflation adoption among people is influencing people to purchase precious metals for their financial status, which is boosting the global precious metals market growth. 

Market Restraints:

The factor that is hampering the market growth is storage cost. As precious metals are in high demand, they need to be stored with high security. The cost of storage and transportation for the physical gold and security issues are all factors hindering the market expansion. Another factor that is expected to hinder the market growth is that the investments in precious metals like gold, silver, and platinum do not provide dividends or any interest and do not generate any cash flow in further deals, which highly impacts the precious metal market expansion. 

The investment method is like a stock-based investment, where stocks related to poorly managed metal mining or manufacturing organizations are expected to risk losing money, which hampers the growth of investments in precious metals and is expected to impede market revenue. 

Market Opportunities:

Rising demand for precious metals in the aircraft industry will provide market growth opportunities worldwide over the forecast period. Precious metals are highly adopted in the industry due to their unique properties, such as high conductivity, corrosion resistance, and catalytic activity. The recovery of precious metals from the aerospace industry scrap is a crucial part of reducing waste and conserving valuable resources, which fuels the market growth opportunities in the aircraft industry. Platinum is used to manufacture jet engine parts and palladium in aircraft spark plugs and fuel cells. Gold is used for coating electrical contacts by providing high conductivity. 

Market Challenges:

The prices of precious metals are about to be influenced by several factors, such as currency fluctuations, government reserves, and geopolitical uncertainties, which are expected to be a challenge for market expansion. Mining precious metals is a difficult task involving large machinery, long working hours, high labor costs, and uncertain results. All these factors challenge the expansion of the precious metal market.  

PRECIOUS METAL MARKET REPORT COVERAGE:

Market Segmentation:

Precious Metal Market - By Type:

• Gold
• Silver
• Platinum
• Palladium
• Others

The gold segment dominated the global precious metal market in 2023 with a market share of 83.4% due to higher usage in the jewelry sector. Gold production has been increasing since the past decade when new mines were commissioned in 2019. In these new mines, certain mines are expected to fuel the production of gold, which is expected to influence by maintaining the domination during the forecast period. 

The silver segment is expected to have a significant CAGR over the forecast period, which will influence the global market growth. Higher adoption of silver in the industry and jewelry sectors with the benefits of low cost compared to gold is expected to drive the market growth in this segment. Countries like Mexico and Peru are expected to be production hubs for silver production. 

The Platinum and Palladium segments are expected to grow steadily during the forecast period. Platinum is gaining traction in the jewelry sector, where palladium is helpful in manufacturing automotive vehicles. 

Precious Metal Market - By Application:

• Jewellery
• Industrial
• Investment
• Dentistry
• Computer Parts
• Others

The jewelry segment held the largest revenue share of 46.3% in 2023 in the precious metal market. This segment is expected to create healthy market growth opportunities over the forecast period. The importance of gold traits in countries like China and India is a primary driving factor in the forecast period. The wedding traditions of the countries involving gold and silver are raising the demand for the precious metals in the region. 

The industrial segment held the second largest share, 34.2%, in the global market revenue in 2023. Higher adoption of precious metals in the electronics and aircraft industries is boosting the market expansion in this segment and is estimated to have significant growth over the forecast period. Silver is used more in various industrial applications than other metals. 

The investment segment is expected to grow steadily over the forecast period. The declining prices of the platinum are generating the Japanese investors, which will drive the purchase by increasing the market value in this segment. 

Precious Metal Market - By End-User:

• Electronics
• Automotive
• Aerospace
• Oil and Gas
• Medical
• Others

The electronic segment dominated the global market, with the largest share of 67.3% in 2023. The demand for precious metals in the electronics industry is high, and silver silver is ranked at the top. Precious metals are highly preferred in the electronic industry for their unique benefits such as corrosive resistance, high conductivity, and catalyst nature. These factors are expected to maintain the domination of the electronic segment in the precious metal market over the forecast period. 

Market Regional Analysis:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Asia Pacific dominated the global revenue in 2023 with the most significant market share of 58%. Precious metals like gold and silver are in high demand in the countries of the Asia Pacific region as precious metals are highly incorporated in weddings where they are considered social status. China is considered to have the most significant influence on the market value of precious metals as China is the leading consumer of gold, platinum, and palladium. India is considered as second powerhouse of the region, and the growing emergence in the country is expected to drive the market during the forecast period. India is the second largest consumer of gold commodities in Asia. 

North America held the second-largest share in the global market revenue and is projected to have a significant CAGR over the forecast period. Mexico is the central hub for silver production, a key driving factor for the market expansion in the North American region. Developed countries like the US and Canada have strong manufacturing bases with advanced technology in mining activities. 

Europe is expected to have slow, steady growth over the forecast period as it is gaining traction in the industrial and jewelry sector. The growing adoption of precious metals in industrial and medical applications is expected to create growth opportunities for the precious metal market in the forecast period.

COVID-19 Impact on Precious Metal Market:

The Pandemic substantially negatively impacted the precious metal market due to stringent government lockdown regulations. The lockdown led to the temporary shutdown of global mining industries in several regions, stopping operations and construction, decreasing prices, and worsening market revenue. However, the demand for precious metals such as gold, silver, and platinum had increased, which impacted positively by increasing the prices of the metals. The Pandemic had led to disruption in the supply chain, causing shortages and production delays, which led to a rise in the prices of the precious metals. The post-pandemic is marking steady growth in the market revenue due to the resuming of the mining industries.

Market Key Players:

1. Freeport-McMoRan
2. Polyus
3. Newmont Corporation
4. Gold Fields Limited
5. Randgold Exploration Company Limited
6. Barrick Gold
7. AngloGold Ashanti
8. Kinross Gold Corporation
9. Newcrest Mining Limited

Market Recent Developments: 

• In July 2023, Barrick Gold announced its extension of mine life for the Tongon gold project. This decision was taken due to the positive outcomes of gold mining activities within the Nielle mining area. 
• In July 2023, K92 Mining Inc. announced the resumption of underground mining operations at Kainantu Gold Mine. This restart is by prioritizing safety due to the tragic incidents. K92 Mining Inc. stated that these events do not affect its production and cost guidance for 2023. 
• In June 2023, AngloGold Ashanti announced a pioneering renewable energy initiative at Tropicana Gold Mine for notable achievement in its commitment to carbon emissions reduction. AngloGold Ashanti Australia Ltd is taking construction and operating of extensive 62MW solar and wind production capacity at the mine. 
• In May 2021, Newmont Corporation completed the acquisition of GT Gold by acquiring the remaining 85.1% of the company's shares. 
• In April 2021, Barrick Gold Corporation started its third underground mine to deliver gold. This mine is estimated to deliver an output of 19.8 tons of gold every year.