Global Precious Metal Market - 2024-2031

Global Precious Metal Market - 2024-2031

Global Precious Metal Market reached US$ 209.4 billion in 2023 and is expected to reach US$ 300.3 million by 2031, growing with a CAGR of 5.2% during the forecast period 2024-2031.

The increasing use of precious metals in the industrial sector is propelling the market's expansion. Precious metals are discovering new uses in cutting-edge technology, expanding beyond their conventional functions in jewelry, electronics and the automotive sector. For instance, there is now more demand for metals like lithium, cobalt and nickel for batteries due to the rise in the manufacture of electric vehicles, although palladium and platinum are still needed for catalytic converters.

The precious metals industry is significantly driven by the growing focus on sustainability and green technology. A crucial part of renewable energy sources like solar panels and fuel cells are metals like silver, platinum and palladium. The metals are predicted to become more in demand as green technology increases and efforts across the world to address climate change increase.

Asia-Pacific is among the growing regions in the global precious metal market covering more than 1/3rd of the market. The strong demand for precious metals, particularly gold and silver, in nations like China and India has contributed significantly to the rise of the global precious metal market in the Asia-Pacific. Gold holds great cultural significance for these countries, as it is not only seen as a sign of riches but also as an essential component of social and religious rituals.

Dynamics

Increasing Precious Metals Demand in the Electronics Industry

The electronics industry's demand for precious metals has been further spurred by the focus on green technology and renewable energy sources. The manufacture of photovoltaic cells, which are used in solar panels, requires silver as a critical component, supporting the globally movement toward renewable sources of energy.

Furthermore, to raise China's share in global semiconductor production, the National IC Fund of China spent US$ 39 billion in July 2021, of which 69.7% had been allocated for front-end manufacturing. Furthermore, China has established over fifteen municipal government industrial-community funds valued at US$ 25 billion, in addition to US$ 73 billion National Fund, which is intended to support Chinese semiconductor and electronics firms. In this sense, demands for precious metal refining will rise in tandem with the demand for electronic products, semiconductors and parts.

Increasing Demand From the Automotive Industry

The demand for precious metals, especially platinum and palladium, which are essential for catalytic converters, is mostly driven by the automobile sector. Essential parts of cars that minimize harmful emissions by changing pollutants into less dangerous forms are catalytic converters. In this process, platinum and palladium function as catalysts, promoting the chemical processes that convert toxic gases into nitrogen, carbon dioxide and water vapor.

The International Netherlands Group (ING) published a report that indicates that since the epidemic, there has been a rise in demand for the development and manufacture of electric vehicles. As to the report, there was a 50% surge in new electric vehicle sales globally in 2021 and an anticipated 8% growth in 2022.

It also claims that in Europe, China and US, electric vehicle sales have climbed by 14%, 9% and 4%, respectively. The market is expected to grow in the coming years due to an increase in automobile production, as precious metal refining is widely used in various automotive applications such as engine units, switches, reflective films & mirrors, fuel cells, batteries and other electronic components of the automobile.

Mining's Environmental and Social Concerns

The growing attention to and knowledge of the environmental and social effects of mining activities is one major factor limiting the growth of the global precious metals industry. Mining operations can entail extensive extraction procedures that can result in habitat damage, water pollution and deforestation, especially when mining for metals like gold and platinum.

Additionally, there is increasing demand for socially and ecologically responsible methods due to worries about fair labor standards, the displacement of local populations and human rights issues related to mining activities. The elements may raise operational difficulties, reputational hazards and legal barriers for businesses engaged in the precious metals industry, which may affect the dynamics of the market and the supply chain as a whole.

Volatility in Prices

The natural volatility of metal prices is a major impediment to the global precious metal industry. Gold, silver, platinum and palladium are examples of precious metals that are prone to swings due to a range of reasons, including currency movements, geopolitical events and economic situations. Even though these metals are frequently regarded as safe-haven investments, their values are subject to sudden, dramatic fluctuations.

In addition, among all the precious metals, platinum usually varies in price the greatest. Platinum saw an 11.91% decrease in price in 2021, from its greatest value of US$ 1071 during the year's start to US$ 950 at its close. In addition, the price of platinum increased by 10.44% in 2020 from US$ 985 at the beginning of the year to US$ 1078.44 at the end of the year. Therefore, it is likely that the market's expansion would be constrained by precious metals' volatile pricing.

Segment Analysis

The global precious metal market is segmented based on type, application and region.

Rising Demand Precious Metals Demand in Electronics Industry

The electronics segment is among the growing regions in the global precious metal market covering more than 1/3rd of the market. The growing demand for these metals in the electronics sector is fueling significant expansion in the global precious metal market. The tendency can be attributed to several sources. The widespread use of electronics and increasing technological advancement are two important contributing factors. Precious metals, such as palladium, platinum, silver and gold, are needed to make computers, tablets, cell phones and other electronic devices.

According to recent insights published on Growth from Knowledge (GRK), 2021, the first quarter of 2021 saw a total sales rise of US$ 42.8 billion for the globally consumer electronics market, indicating an 18% increase from 2020 levels. Due to the manufacture of electronic applications such as electroplating, optical coatings, electrical insulation, printed circuit boards and other related applications, there will consequently be a greater need for precious metals refining, which will drive market expansion throughout the projection period.

Geographical Penetration

Growing Demand for Precious Metals in Industrial Applications in Asia-Pacific

Asia-Pacific has been a dominant force in the global precious metal market. The metals are necessary parts of catalytic converters, electrical gadgets and other cutting-edge technology. The demand for precious metals in industrial applications is anticipated to stay strong as the area continues to see economic development and technical improvements, which will greatly contribute to the overall growth of the global precious metal market.

In addition, precious metals have seen a sharp increase in industrial use in the Asia-Pacific, especially in the electronics and automotive industries. Major participants in the high-tech manufacturing sector, such as South Korea and Japan, are pushing up demand for metals like silver, palladium and platinum.

For Instance, in 2023, Silvercorp Metals Inc. and OreCorp Limited signed a binding scheme implementation deed for Silvercorp's acquisition of all remaining fully paid ordinary shares of OreCorp. The acquisition, structured under an Australian scheme of arrangement, awaits fulfillment of various conditions. The aim is to swiftly establish a diversified, highly profitable precious metals company with a pro forma market cap of US$ 630 million, a robust growth pipeline and exposure to a promising emerging mining jurisdiction.

For Instance, in 2024, A-Mark Precious Metals, Inc. and AMS Holding, LLC, acquired LPM Group Limited, a major player in the Asian precious metals market. The anticipated closing for these transactions is set for February 2024, pending the finalization of agreements, meeting standard closing conditions and securing necessary consents or approvals from third parties, including lenders under A-Mark's Trading Credit Facility.

COVID-19 Impact Analysis

There were effects of the COVID-19 epidemic on supply and demand dynamics in the global precious metal market. The demand for safe-haven assets, such as precious metals like gold and silver, surged during the early stages of the epidemic due to the economic uncertainties. Prices increased significantly because investors flocked to these metals as a safety net against the erratic financial markets. Because gold is typically seen as a store of value during difficult times, it saw a particularly noteworthy increase.

Furthermore, the pandemic produced a disturbance in the globally precious metal supply chain. Production was impacted by worker shortages, restrictions and lockdowns, which presented difficulties for mining operations. Transporting metals from mines to refineries and ultimately to final customers was also impacted by logistical problems. Coin and bar processing and minting were made more difficult by the closing of refineries and mints. An already complex market became even more complicated as a result of these supply chain interruptions.

The pandemic had an impact on the demand for precious metals across a range of industries. The demand for metals like palladium and platinum, which are widely used in the car sector for catalytic converters, decreased as a result of production interruptions and economic slowdowns. However, the drive for renewable energy sources and the growing acceptance of green technology have opened up new markets for metals like silver, which is essential to the manufacturing of solar panels.

Russia-Ukraine War Impact Analysis

The conflict between Russia and Ukraine has had a substantial impact on the world market for precious metals, especially on the dynamics of supply and pricing for important metals. Demand for precious metals has traditionally surged during periods of geopolitical unpredictability because they were viewed as safe-haven investments.

The metals include gold, palladium and platinum. Prices increased as a result of investors using these metals as a store of wealth as tensions increased. For example, gold is well-known for being a safe-haven asset. When there is geopolitical unrest, demand for gold tends to increase as investors flee unstable financial markets.

Precious metals prices have surged as a result of Russia's invasion of Ukraine since demand is still high and supply is still inconsistent. When it comes to commodities pricing, Russia is one of the global leaders. The majority of its yearly exports are made up of food items, precious metals and oil and gas. More specifically, Russia is the world's second-biggest producer of gold, accounts for 15% of the global supply of platinum and is the world's greatest producer of palladium with 40% of global production.

By Type
• Gold
• Silver
• Platinum
• Palladium
• Ruthenium
• Rhodium
• Iridium
• Osmium
• Others

By Application
• Jewelry
• Electronics
• Automotive
• Chemicals
• Catalysts
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• On May 16, 2023, Heraeus Precious Metals, a top provider of goods made of precious metals and one of the biggest recyclers of platinum group metals, increased the recycling capacity at its headquarters in Hanau, Germany. The expansion will result in the creation of twenty more jobs.
• On August 30, 2021, A-Mark Precious Metals, Inc., a prominent fully integrated precious metals platform, increased its strategic investments in Pinehurst Coin Exchange, Inc. and Sunshine Minting (SMI) to further strengthen its position in the physical precious metals market. A-Mark was able to swiftly develop a very successful platform to add top complementary direct-to-consumer (DTC) assets like Pinehurst to the portfolio with the well-timed acquisition of JMB in March.
• December 12, 2023, Aurubis AG has gained approval for further investments in its Hamburg facility, totaling 330 million euros ($356.1 million). Approximately US$323.7 million will be directed towards a new precious metals refinery (PMR), creating an integrated high-security area for precious metal processing alongside existing facilities. Additionally, about US$32.4 million will be invested in environmental protection equipment at the site, focusing on the expansion of the reducing diffuse emissions (RDE) system in primary copper production.

Competitive Landscape

The major global players in the market include Newmont Corporation, Barrick Gold Corporation, Anglo American Platinum Limited, Impala Platinum Holdings Limited, Norilsk Nickel, Wheaton Precious Metals, Polyus Gold International Limited, Kinross Gold Corporation, Sibanye-Stillwater and Royal Gold, Inc.

Why Purchase the Report?
• To visualize the global precious metal market segmentation based on type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of precious metal market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global precious metal market report would provide approximately 54 tables, 51 figures and 191 Pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies