The global precious metals market size is expected to gain momentum by reaching USD 403.08 billion by 2028 from USD 275.40 billion in 2021 while exhibiting a CAGR of 5.6% between 2021 to 2028. In its report titled, “Precious Metals Market, 2021-2028,” Fortune Business Insights™ mentions that the market stood at USD 261.94 billion in 2020.
Precious metals are rare, naturally occurring metallic elements with high economic value due to their rarity, use in various industrial applications, and historical importance as a form of currency and investment. The most well-known precious metals include gold, silver, platinum, and palladium.
Gold (Au)
- Properties: Gold is highly malleable, ductile, and resistant to corrosion and oxidation. It is also an excellent conductor of electricity.
- Uses: Primarily used in jewelry, electronics, and as a monetary standard (gold bullion and coins). It is also used in dentistry and in some medical devices.
- Investment: Gold is a popular investment asset, often seen as a hedge against inflation and currency fluctuations. It is traded globally in the form of bars, coins, and ETFs (exchange-traded funds).
Silver (Ag)
- Properties: Silver has the highest electrical conductivity of any element and excellent thermal conductivity and reflectivity.
- Uses: Commonly used in jewelry, silverware, and industrial applications such as electrical contacts, batteries, and photovoltaic cells. It is also used in photography (silver nitrate) and medical applications due to its antibacterial properties.
- Investment: Similar to gold, silver is also an investment asset, available as bullion, coins, and through ETFs.
Platinum (Pt)
- Properties: Platinum is highly resistant to wear and tarnish, has a high melting point, and is dense and malleable.
- Uses: Widely used in catalytic converters for vehicles, jewelry, and various industrial applications including chemical processing, fuel cells, and electronics.
- Investment: Platinum is considered a strategic investment, often traded as bullion, coins, and ETFs. Its price is influenced by industrial demand and supply constraints.
Palladium (Pd)
- Properties: Palladium is a rare, lustrous metal with excellent catalytic properties and resistance to corrosion.
- Uses: Primarily used in catalytic converters, electronics, dentistry, and in hydrogen purification processes.
- Investment: Palladium is traded as an investment asset in the form of bullion and coins, with its price driven largely by automotive industry demand.
Other Precious Metals
- Rhodium (Rh): Used in catalytic converters, glass production, and as a corrosion-resistant coating for other metals.
- Iridium (Ir): Known for its high melting point and corrosion resistance, used in high-temperature applications and electrical contacts.
- Osmium (Os): Extremely dense and used in specialized applications like fountain pen nibs and electrical contacts.
- Ruthenium (Ru): Used in electronics, electroplating, and as an alloying agent to improve the properties of other metals.
The demand for precious type of metals is expected to rise globally owing to increased investment in jewelry. Moreover, gold and silver are some of the prime metals which are extensively used in South Asian countries, and the rising population in this region is adding more to the market. For instance, according to a report by the World Gold Council, in 2019, Indian households have accumulated up to 25,000 tonnes of gold, which makes India hold the tag of the world’s largest holders of the metal.
Market Segmentation:
By type, the market for precious metals industry is divided into silver, gold, and platinum group metals. By application, it is divided into industrial, jewelry, investment, and others.
Based on application, the industrial segment held the largest share in 2020 in the market. This is attributable to the increasing demand for silver from photovoltaics manufacturers, as fossil fuels are depleting, and people are looking for renewable energy sources to meet their energy demands.
Finally, based on region, the market is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
What does the Report Provide?
The precious metals market share report provides a detailed analysis of several factors, such as the key drivers and restraints that will impact growth. Additionally, the report provides insights into the regional analysis that covers different regions, contributing to the growth of the market. It includes the competitive landscape that involves the leading companies and the adoption of strategies to introduce new products, announce partnerships, and collaborate to contribute to the market growth.
Driving Factor
Increasing Disposable Income to Drive Market Growth
The rising disposable income and incessantly changing lifestyle choices are driving the precious metal market growth. For instance, the high demand for jewelry in wedding ceremonies of China, India, and other South Asian countries is projected to surge the consumption of precious metals. Additionally, gold is considered a safe haven for investment, as compared to equities, bonds, and crypto. As per the study by World Gold Council, ETFs and other investments accounted for 23% of the total gold demand in 2020. This is expected to drive the precious metals market growth in upcoming years.
Browse Detailed Summary of Research Report with TOC:
https://www.fortunebusinessinsights.com/precious-metals-market-105747
