Precious Metals Market

Global Precious Metals Market:

The global precious metals market size reached US$ 209.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 323.2 Billion by 2032, exhibiting a growth rate (CAGR) of 4.8% during 2024-2032. The market is primarily driven by the inflating investments in precious metals, increasing utilization of precious metals in a variety of industrial applications, and the extensive utilization of these metals for minting coins.

Global Precious Metals Market Analysis:

• Major Market Drivers: The growing popularity of gold and silver as safe-haven assets during times of geopolitical instability and economic uncertainty is mainly augmenting the precious metals market growth. Moreover, the continuous changes in supply and demand, owing to several factors, including recycling rates, mining outputs, central bank buying, and investment and jewelry demand are also catalyzing the global market for precious metals.
• Key Market Trends: The inflating number of investments in gold and silver, on account of inflation concerns, economic uncertainty, and low interest rates, is bolstering the precious metals market. Besides this, the elevating product requirement for various industrial applications across the healthcare, electronics, and automotive sectors is further propelling the market outlook.
• Competitive Landscape: Some of the major precious metals market companies comprise Anglo American Platinum Limited (Anglo American PLC), Barrick Gold Corporation, First Majestic Silver Corp, First Quantum Minerals Ltd., Freeport-Mcmoran Inc., Fresnillo Plc (Peñoles Group), Gabriel Resources Ltd., Glencore International AG, Gold Fields Limited, Harmony Gold, Impala Platinum Holdings Limited, Lundin Mining Corporation, and Pan American Silver Corporation among others.
• Geographical Trends: Asia Pacific dominated the precious metals market, owing to the rising production activities in the automotive industry and the inflating disposable incomes of individuals. Furthermore, the shifting consumer preferences towards modern investment options and the increasing purchase of precious metals by central banks of countries, such as India, South Korea, and China, are positively influencing the market growth in this region.
• Challenges and Opportunities: The major challenges hampering the market include limited and rare new discoveries that can lead to price spikes and supply shortages, particularly during times of high demand. However, the ongoing technological advancements are creating new applications for precious metals in the renewable energy and electronics sectors, which presents substantial opportunities for market expansion in the future.
   

Global Precious Metals Market Trends:

Inflating Investments in Precious Metals

The inflating investments in precious metals, including gold and silver, on account of their limited supply and their capability to retain their value over time, are influencing the precious metals market statistics. Additionally, the growing popularity of gold among major investors as a safe haven during geopolitical tensions and economic uncertainty is expected to support the market growth in the near future. For instance, Barrick Gold disclosed the extension of the mine life for its Tongon gold project in Côte d'Ivoire. This decision came as a result of the ongoing positive outcomes from gold exploration activities within the Nielle mining permit area. Originally established in 2010 with an expected closure in 2021, the company filed documentation in 2021 to extend the mine’s life until 2026.

Rising Utilization in Making Jewelry and Ornaments

The rising utilization of precious metals in the production of various types of jewelry and ornaments, such as rings, bracelets, necklaces, etc., on account of their beauty and durability, is catalyzing the precious metals market revenue. Besides this, the shifting consumer preferences towards the latest trends in designs and styles are augmenting the market growth further. Moreover, the inflating disposable incomes of individuals, especially in emerging economies, and the introduction of innovative and state-of-the-art jewelry by the leading players are positively influencing the demand for precious metals. For example, as per the U.S. Census Bureau, the import of precious metals witnessed an abrupt increase. In addition to this, gold and silver alloys are widely used in the plated jewelry industry to form intermediate coatings, which offer good corrosion resistance. Furthermore, the consumer disposable income in the U.S. increased at a significant rate from US$ 16.54 Trillion to US$ 17.26 Trillion.

Trends in Supply and Demand

The continuous changes in supply and demand, owing to several factors, including recycling rates, mining outputs, central bank buying, and investment and jewelry demand are propelling the precious metals market demand significantly. In line with this, trends in the mining sector are influenced by environmental concerns and sustainability practices. For instance, in the U.S., the total production of precious metals was evaluated at around 1,195.6 tons as per the stats released by the United States Geological Survey (USGS). Within this category, gold production reached nearly 200 tons and approximately 15.6 tons of platinum group metals (PGM) were manufactured. PGM resources were mined in Montana by Sibanye-Stillwater, which is the sole producer of PGM in the U.S. Moreover, according to the United States Geological Survey, Mexico’s silver production was 6,300 metric tons, followed by Peru at 3,100 metric tons.

Global Precious Metals Market Segmentation

IMARC Group provides an analysis of the key trends in each segment of the global precious metals market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on metal type and application.

Breakup by Metal Type:

• Gold
  • Jewelry
  • Investment
  • Technology
  • Others
• Platinum
  • Auto-catalyst
  • Jewelry
  • Chemical
  • Petroleum
  • Medical
  • Others
• Silver
  • Industrial Application
  • Jewelry
  • Coins and Bars
  • Silverware
  • Others
• Palladium
  • Auto-catalyst
  • Electrical
  • Dental
  • Chemical
  • Jewelry
  • Others
     

Gold accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the metal type. This includes gold (jewelry, investment, technology, and others), platinum (auto-catalyst, jewelry, chemical, petroleum, Medical, and others), silver (industrial application, jewelry, coins and bars, silverware, and others), and palladium ( auto-catalyst, electrical, dental, chemical, jewelry, and others). According to the report, gold represented the largest precious metals market share.

Gold is primarily utilized in jewelry, on account of its durability and beauty. It is used in making bracelets, rings, elaborate necklaces, etc. Gold is widely preferred as a hedge and store of value against inflation, as it can be purchased in the form of coins, bars, or exchange-traded funds (ETFs). For instance, according to the WGC, gold has an average annual return of 7.78%, trailing only commodities, which have an average annual return of 8.3%. Besides this, Barrick Gold, the world's second-biggest gold producer, announced a 10% increase in attributable proved and credible gold mineral reserves to 76 million ounces net of depletion while maintaining current reserves.

Breakup by Application:

• Jewelry
• Investment
• Electricals
• Automotive
• Chemicals
• Others
   

Jewelry holds the largest share in the industry

The report has provided a detailed breakup and analysis of the market based on the application. This includes jewelry, investment, electricals, automotive, chemicals, and others. According to the report, jewelry accounted for the largest share in the precious metals market.

The elevating demand for precious metals, such as gold, platinum, and silver in the manufacturing of diverse kinds of jewelry is propelling the market growth in this segment. Besides this, the inflating disposable incomes of individuals, the emerging trends in designs, and the rising improvement in the purchasing power of consumers are positively influencing the demand for precious metals in making jewelry.

Breakup by Region:

• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest share in the precious metals market statistics

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific accounted for the largest market share.

Asia Pacific represents the largest region based on the precious metals market overview, owing to the rising production activities in the automotive industry and the inflating disposable incomes of individuals. Furthermore, the shifting consumer preferences towards modern investment options and the increasing purchase of precious metals by central banks of countries, such as India, South Korea, and China are positively influencing the market growth in this region. For instance, according to Platinum Guild International (PGI), the sales of platinum in Japan exceeded the mark of JPY one trillion (US$ 10 Billion). Moreover, according to the U.S. Geological Survey, gold mines in China produced the most gold in the Asia-Pacific region. Australia, Uzbekistan, and Indonesia were the other top producers in the region, with 320 metric tons, 100 metric tons, and 70 metric tons mined, respectively. Additionally, India led the gold recycling market, with sharp increases in recycling supply. The South Asian region, with India being the biggest market, saw recycling supply up nearly 40% year-on-year and about 60% quarter-on-quarter.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the major market players in the precious metals industry include:

• Anglo American Platinum Limited (Anglo American PLC)
• Barrick Gold Corporation
• First Majestic Silver Corp
• First Quantum Minerals Ltd.
• Freeport-Mcmoran Inc.
• Fresnillo Plc (Peñoles Group)
• Gabriel Resources Ltd.
• Glencore International AG
• Gold Fields Limited
• Harmony Gold
• Impala Platinum Holdings Limited
• Lundin Mining Corporation
• Pan American Silver Corporation
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Precious Metals Market Recent Developments:

• March 2024: The upcoming FOMC meeting with new dot plots for U.S. interest rates and Iranian parliamentary elections made March a pivotal month for the yellow metal, according to the latest gold market commentary from the World Gold Council (WGC). “Gold prices retreated to US$2,048/oz by the end of February, a 0.3% m/m fall,” they noted. “Nonetheless, FX volatility has ensured that y-t-d returns remain positive in four of the major currencies.
• November 2023: Sibanye-Stillwater agreed to acquire Reldan, a metal recycler based in the United States. Reldan is a Pennsylvania-based recycling group that reprocesses various waste streams, including industrial and electronic waste, to recycle green precious metals, such as platinum and palladium.
• October 2023: Anglo-American collaborated with BMW Group South Africa and Sasol South Africa Limited. Under the collaboration agreements, BMW will provide the hydrogen fuel-cell electric vehicles (FCEVs), Sasol will supply the green hydrogen and mobile refueler, and Anglo American will provide platinum group metals (PGMs) used in FCEVs.Anglo-American.

Precious Metals Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the precious metals market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global precious metals market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the precious metals industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.