Precious Metals Market Size, Share & Industry Analysis, By Type (Silver, Gold, and Platinum Group Metals), By Application (Industrial, Jewelry, Investment, and Others), and Regional Forecast, 2024-2032

The global precious metals market size was USD 306.44 billion in 2023 and is projected to grow from USD 323.71 billion in 2024 to USD 501.09 billion by 2032 at a CAGR of 5.6% during the forecast period. Asia Pacific dominated the precious metals market with a market share of 52.33% in 2023. Moreover, the precious metals market in the U.S. is projected to grow significantly, reaching an estimated value of USD 117.78 billion by 2032, driven by increasing demand for gold and silver as safe-haven assets amid economic uncertainty.

Increasing disposable incomes and changing lifestyle choices are a few of the factors driving the market. The demand for these metals is estimated to propel globally for jewelry and investment applications as gold and silver are of prime importance in wedding ceremonies of Southeast Asian countries. Therefore, the rising population and increasing spending capacity of consumers in the region will contribute towards the market growth.

The onset of the pandemic in January 2020 perpetrated significant damage to the market. To mitigate the spread of the virus, manufacturing facilities and mining activities were temporarily shut down. The production of electronic products reduced as the demand from consumers declined. Key players functioning in the electrical & electronics industry were unable to acquire silver to produce printed circuit boards and composite boards. For instance, according to Silver Institute, the demand for silver for industrial applications declined by 5% in 2020. However, increasing investments in precious metals and in Gold Exchange-Traded Fund (ETFs) slowed the damage caused by the pandemic on the market. According to a study by the World Gold Council, global investment demand for gold increased by 40% in 2020, compared to 2019. Thus, this market is expected to thrive during the forecast period.

Precious Metals Market Trends

Consistent Growth of Industrial Sector Globally to Offer Lucrative Opportunities

The growth of end-use industries such as automotive and electrical & electronics are increasing the demand for these metals. The automotive industry is the major consumer of platinum and palladium, with primary application in the catalytic converter. Additionally, the growing awareness about environmental pollution and changing regulations regarding carbon emissions from vehicles will substantially boost the demand for metals of the platinum group for application in catalytic convertors. Furthermore, the rapid expansion of the electrical & electronics industry, due to rising demand for consumer electronic products, will surge the consumption of silver. The rising demand for silver by solar panel manufacturers is aiding the demand for these metals, as silver has the ability to conduct electricity with the highest efficiency. As stated by Silver Institute, photovoltaics accounted for 10.2% of the total silver market’s demand in 2020.

Precious Metals Market Growth Factors

Increasing Disposable Income and Changing Lifestyle to Drive Growth

Inflating disposable income and changing lifestyle choices are the important factors driving the market growth. Additionally, the extensive importance of jewelry in wedding ceremonies of China, India, and other South Asian countries is projected to surge the consumption of precious metals. Furthermore, the perception of gold as a status symbol and safe haven for investment has significantly contributed to the growth of the market.

As, to avoid the risk of negative interest return rates from equities, bonds, or real estate, investors regularly flock towards gold as an asset that will maintain its value. For instance, as per the study by World Gold Council, ETFs and other investments accounted for 23% of the total gold demand in 2020. Therefore, the aforementioned factors are expected to contribute to precious metals market growth.

Rising Product Demand from Industrial Applications to Drive Market Growth

The rising demand for precious metals in industrial applications propels market growth due to their unique properties. Metals, such as gold, silver, and platinum, are prized for their higher conductivity, corrosion resistance, and catalytic capabilities, making them indispensable in the electrical & electronics, automotive, and healthcare sectors. For instance, gold is used in electronics for its conductivity and in healthcare for its biocompatibility. Silver finds applications in solar panels and antimicrobial coatings. Platinum is essential in catalytic converters for vehicles, reducing emissions. The growing adoption of green technologies, such as electric vehicles and renewable energy systems, further boosts demand for these metals. As industries increasingly prioritize sustainability and innovation, the product demand for cutting-edge technologies continues to surge, driving their market growth.

RESTRAINING FACTORS

Inconsistent Prices of Precious Metals to Impede Growth

The precious metals prices are heavily influenced by several factors such as inflation, currency fluctuations, government reserves, and geopolitical uncertainties. Owing to such instabilities in pricing, the demand, and supply of these metals get severely affected, thereby impacting the industrial production activities. Additionally, the mining of precious minerals is a tedious task involving large capital in machinery, long working hours, and uncertainty of output is anticipated to hamper the growth. Furthermore, the inefficient polishing to preserve the luster and color of these metals will also hamper the market.

Precious Metals Market Segmentation Analysis

By Type Analysis

Gold Segment Held the Dominant Position in 2023 Driven by High Demand for Jewelry

Based on type, the precious metals market for is segmented into silver, gold, and platinum group metals.

Gold occupied the dominant precious metals market share in 2023. The growth of the segment is associated with increasing disposable income and growing knowledge about investments amongst consumers. Gold is extensively used for jewelry and investments due to its visual appeal and aesthetics. Developing countries in Asia Pacific, such as India and China, are the major consumers of gold due to the rising spending capacity of the individuals.

The silver segment will exhibit significant growth during the forecast period. The growth is characterized by rising demand for electrical & electronics applications. In addition, the low cost of silver compared to its counterparts poses an advantage for consumers for investments and jewelry.

Platinum group metals are witnessing increasing demand for the auto-catalysts application. Owing to the highly efficient ability to capture carbon and other harmful emissions, industries are increasingly using platinum group metals to curb pollution and meet the environmental standards set by the government.

By Application Analysis

Industrial Segment to Occupy Largest Market Share due to the Rising Product Demand from Photovoltaic Manufacturers

Based on the application, the precious metals market is segmented into industrial, jewelry, investments, and others.

The industrial segment is expected to remain the largest application during the forecast period. The segment’s growth is driven by fueling demand for silver from photovoltaic manufacturers. Depleting fossil fuels has propelled the demand for solar panels, thereby boosting the segment growth.

The jewelry segment is estimated to grow at a significant CAGR during the forecast period. The primary factor for the segment’s growth is the rising disposable income of consumers, hence driving the demand for jewelry. Gold and silver are the most preferred metals to produce jewelry due to their luster and malleability. The increasing demand for jewelry from consumers in Southeast Asia, owing to the importance of gold in wedding ceremonies, is fueling the segment growth.

Investment application is calculated to be the fastest-growing segment during the forecast period. The increasing investments in a commodity such as gold due to its low-risk factor compared to other investments are augmenting the segment growth. Additionally, the drop in gold prices amidst the COVID-19 pandemic provided investors a new opportunity to increase their wealth, thereby resulting in the segment’s growth.

REGIONAL INSIGHTS

The precious metals market size in Asia Pacific stood at USD 160.37 billion in 2023. The region held a dominant share of the market in 2023 and is calculated to reserve the leading position throughout the forecast period. The domination is attributed to the presence of the largest electrical & electronics industry in the region. China and India have the widest influence on the market, owing to the countries being major consumers of gold. These countries are rapidly expanding their industrial sector by partnering with foreign investors and international companies, which are expected to boost the demand.

North America is projected to be the second-fastest-growing region in the market. The presence of major precious minerals mines in the vicinity of the region, combined with the strong manufacturing capabilities of the U.S., is likely to fuel the market growth.

Europe will witness a significant rise in demand for precious metals from industrial applications. The major automotive countries in the region are substantially contributing to the rise in demand. Furthermore, the rise in the consumption of jewelry owing to the expansion of the fashion industry in the region will support the growth.

The growth of the precious metals market in the Middle East & Africa is characterized by high demand from Gulf countries. High demand from jewelry and industrial applications will drive the market in the region. Latin America will witness significant growth in the market owing to the high demand for industrial applications.

List of Key Companies in Precious Metals Market

Joint Ventures and Acquisition of Mines Will Increase the Presence of Key Companies

Key players are implementing approaches such as joint ventures to investigate and mine precious minerals. The major companies are likely to focus on large reserves in the African region, which are unexplored. New precious mineral mining projects sanctioned to private companies and regulated by the governments are likely to support the rising demand. To expand the presence and to fulfill the demand for gold in the future, Newmont Corporation is focused on acquiring mining sites and forming partnerships.

LIST OF KEY COMPANIES PROFILED:

• Newmont Corporation (U.S.)


• Barrick Gold Corporation (Canada)


• AngloGold Ashanti Limited (South Africa)


• Kinross Gold Corporation (Canada)


• Newcrest Mining Limited (Australia)


• Gold Fields Limited (South Africa)


• Freeport-McMoRan (U.S.)


• Wheaton Precious Metals (Canada)


• Anglo American Platinum Limited (South Africa)


• Impala Platinum Holdings Limited (South Africa)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: Wheaton Precious Metals announced that it has agreed with Orion Mine Finance to acquire Kudz Ze Kayah and Platreef projects. It also announced the purchase of a gold stream for Dalradian Gold's Curraghinalt Project. The move is anticipated to strengthen the company’s market position significantly.


• May 2021: Newmont Corporation completed the acquisition of GT Gold by acquiring the remaining 85.1% shares of the company. With the acquisition, the company strengthened its portfolio. The acquisition includes the Tatogga project, which will contribute to the production of copper and gold in the future.


• April 2021: Barrick Gold Corporation’s Loulo-Gounkoto’s third underground mine to start delivering gold. The mine is estimated to produce an output of 19.8 tons of gold by the end of 2021.

REPORT COVERAGE

The market research report provides a detailed industry analysis and focuses on key aspects, such as profiles of leading companies, precious type of metals types, and leading applications of these metals. Besides this, it offers insights into the current precious metals market trends, dynamics and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced precious metals industry over recent years.

Report Scope & Segmentation