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. The increasing investments in a commodity such as gold due to its low-risk factor compared to other investments such as equities, bonds, or real estate are fueling the market. Moreover, gold, silver, and platinum are the most preferred metals to produce jewelry due to their luster and malleability. Therefore, the increasing demand for jewelry from consumers is resulting in market growth.
Precious metals are rare, naturally occurring metallic elements that have high economic value. They are less reactive than most elements, have high luster, and are usually ductile. Here are some of the most well-known precious metals:
Gold (Au)
- Properties: Soft, yellow, and malleable. Resistant to corrosion and oxidation.
- Uses: Jewelry, electronics, dentistry, and as a monetary standard (investment).
- Historical Importance: Used as a form of currency and symbol of wealth for centuries.
Silver (Ag)
- Properties: Soft, white, and lustrous. Highest electrical and thermal conductivity of all metals.
- Uses: Jewelry, silverware, electronics, batteries, and photography.
- Historical Importance: Used for coinage, ornaments, and various other applications since ancient times.
Platinum (Pt)
- Properties: Dense, malleable, and highly resistant to corrosion and high temperatures.
- Uses: Catalytic converters, jewelry, laboratory equipment, and medical devices.
- Historical Importance: Became widely known in the 18th century; used in various industrial applications.
Palladium (Pd)
- Properties: Lustrous, white metal with high corrosion resistance.
- Uses: Catalytic converters, electronics, dentistry, and hydrogen purification.
- Historical Importance: Discovered in 1803 and primarily used in industrial applications.
Rhodium (Rh)
- Properties: Silvery white, highly reflective, and resistant to corrosion.
- Uses: Catalytic converters, jewelry plating, and industrial processes.
- Historical Importance: Discovered in 1803; prized for its reflective properties.
Iridium (Ir)
- Properties: Very hard, brittle, and highly corrosion-resistant metal.
- Uses: Electrical contacts, spark plugs, and crucibles for high-temperature processes.
- Historical Importance: Discovered in 1803; known for its high density and melting point.
Ruthenium (Ru)
- Properties: Hard, white metal resistant to wear and corrosion.
- Uses: Electrical contacts, thick-film resistors, and catalysis.
- Historical Importance: Discovered in 1844; often used as an alloying agent.
Osmium (Os)
- Properties: Dense, blue-gray metal, extremely hard, and high melting point.
- Uses: Fountain pen nibs, electrical contacts, and industrial processes.
- Historical Importance: Discovered in 1803; known for its extreme density and hardness.
Economic and Investment Aspects
Precious metals are often used as investment vehicles. They are considered a safe haven during economic uncertainty and inflation because they tend to hold their value over time. Investment forms include bullion (bars and coins), ETFs, mining stocks, and futures contracts.
Industrial Applications
Many precious metals have significant industrial uses due to their unique physical and chemical properties. For example:
- Catalysis: Platinum, palladium, and rhodium are crucial in automotive catalytic converters.
- Electronics: Gold, silver, and palladium are used in various electronic devices for their excellent conductivity.
- Medical: Platinum and gold are used in medical devices and dental applications.
Environmental and Ethical Considerations
The mining and refining of precious metals can have significant environmental impacts, including habitat destruction, water pollution, and carbon emissions. Ethical considerations also arise regarding the working conditions in mines and the sourcing of these metals. Sustainable practices and fair trade initiatives aim to address these issues.
Market Segmentation:
By type, the market for precious metals is divided into silver, gold, and platinum group metals. By application, it is divided into industrial, jewelry, investment, and others.
Based on type, the platinum segment held the largest market share of 26.1% in 2020. This is attributable to its increased demand in the auto-catalysts application. Moreover, platinum has the ability to capture carbon and other harmful emissions. Therefore, industries are increasingly using platinum group metals to curb pollution.
Finally, based on region, the precious metal market is categorized into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
COVID-19 Impact
The pandemic inflicted significant damage to the market, as mining and manufacturing units were shut. Moreover, the unavailability of workers also impacted the market, which led to a decline in demand from industrial and jewelry applications. However, investments in precious metals witnessed significant growth during the pandemic surge. For instance, in a report by the World Gold Council, the global investment in gold increased by 40% in 2020, compared to 2019.
What does the Report Provide?
The precious metal market 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 growth of the market.
Driving Factor
High Demand from the Electrical & Electronics Industry to Drive Market Growth
The growing demand for metals from end-users such as automotive and electrical & electronics is increasing the demand for valuable metals. The automotive industry uses platinum and palladium metals in catalytic converters. Additionally, governments worldwide have become more aware of the climate crisis, therefore to meet the substandard of carbon emissions, vehicles have boosted the demand for platinum. Furthermore, the use of silver in the electrical & electronics industry, as stated by Silver Institute, accounted for 10.2% of the total silver demand in 2020 as silver is used in solar panels to conduct electricity with the highest efficiency. These factors are expected to drive the precious metals market growth.
