Precious Metals Market

The global Precious Metals Market is valued at USD 257.2 Billion in 2022 and is projected to reach a value of USD 391.2 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 5.38% between 2023 and 2030.

Premium Insights

In the dynamic landscape of global markets in 2023, Precious Metals have emerged as a resilient and lucrative investment amidst economic uncertainties. Despite challenges such as aggressive interest rate hikes and a robust US dollar, gold, silver, and platinum have not only retained their value but exhibited substantial growth. Central banks' strategic gold purchases and increasing retail investment in the US have played pivotal roles in driving demand. Notably, the weakened US dollar and evolving geopolitical scenarios contribute to a positive outlook for Precious Metals, positioning them as a preferred asset class in the ongoing market trends.

• The rising demand for Precious Metals in the market is driven by the Federal Reserve's less aggressive stance on interest rate hikes, the resurgence of economic activities in China, and sustained high demand for gold jewelry in China and India.
• Gold will remain the leading Type, capturing the majority share worldwide from 2023 to 2030.
• By Application, the Industrial segment dominated the largest market share globally from 2023 to 2030.
• In 2022, North America led the market with the highest revenue share of 47.30%.
• The Asia Pacific region is poised for remarkable growth, displaying a noteworthy Compound Annual Growth Rate (CAGR) between 2023 and 2030.

Top Market Trends

1. Weakened US Dollar Boosts Gold Prices: A 7% decline in the nominal broad dollar index and a 37 basis point drop in the 10-year Treasury yield between November 2022 and January 2023 significantly contributed to the increase in gold prices.
2. Central Banks' Gold Purchases: Central banks globally purchased 28 tons of gold in December 2022, indicating a strategic move to diversify foreign exchange holdings and reduce dependence on the US Dollar.
3. Rising Demand for Gold Coins and Bars: In 2022, there was a notable 2% increase in global demand for gold coins and bars, reaching a 9-year high. This surge was fueled by brisk retail investment, particularly in the US, where investors bought a substantial amount of Eagle and Buffalo coins.
4. Growing Precious Metal Demand in Key Regions: Strong growth was observed in Europe, the Middle East, Turkey, and India, driven by pent-up demand post-COVID and increased trust in Precious Metals as safe-haven investments.
5. Silver's Promising Outlook: Silver is anticipated to outperform gold in 2023 due to growing demand and limited supply. The metal's applications in automotive, renewable energy, and electronics sectors are expected to drive increased demand, potentially leading to a deficit of over 100 million ounces in the next five years.

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Economic Insights

Despite facing headwinds such as rising interest rates and a strong US dollar, Precious Metals have shown resilience in the face of economic uncertainties. Gold, considered a safe hedge against inflation, remains an attractive investment option for retail investors looking to diversify portfolios. The recovery in economic activities in China, coupled with geopolitical tensions, further enhances the appeal of Precious Metals as a wealth preservation strategy. As the Federal Reserve adopts a less aggressive stance on interest rate hikes, the stage is set for continued positive performance in precious metal markets.

Market Segmentation

The Global Precious Metals Market is segregated into the below-mentioned segments as:

The global Precious Metals market can be categorized into Type, Application, Region. The Precious Metals market can be categorized into Gold, Silver, Platinum Group Metals (PGM) based on Type. The Precious Metals market can be categorized into Jewelry, Industrial, Investment, Other Applications based on Application. The Precious Metals market can be categorized into North America, Europe, Asia Pacific, Latin America, MIddle East & Africa based on Region.

Based on Type

Gold Anticipated to account for the Largest Market Share

In 2022, Gold dominated the market. Gold has long been recognized as a valuable and safe-haven investment option, making it a preferred choice among investors. It is known for its inherent value, liquidity, and ability to hedge against inflation and economic uncertainties. The global demand for gold is driven by various factors such as jewelry manufacturing, investment in gold bars and coins, central bank reserves, and technological applications. Additionally, gold is also widely used in sectors like electronics, dentistry, and aerospace, further driving its market growth. With its strong market position and diverse applications, the Type Gold segment is predicted to dominate the Precious Metals market in the coming years.

Based on Application

The Industrial segment will Dominate the Market during the Forecast Period

The Industrial segment is expected to experience the greatest market growth during the forecast period. This can be attributed to the extensive use of Precious Metals in various industrial applications, such as automotive, aerospace, electronics, and chemical industries. Precious Metals like gold, silver, platinum, and palladium are highly sought after for their unique properties, such as excellent electrical conductivity, thermal stability, corrosion resistance, and catalytic properties. These metals are extensively used in the manufacturing of electronic components, catalysts, industrial coatings, and jewelry. The increasing demand for electronic devices, the growth of the automotive and aerospace industries, and the rising investments in infrastructural development are major factors driving the demand for Precious Metals in the industrial sector.

Based on Region

Asia Pacific Expected to Lead the Market in Projected Period

Asia Pacific asserted its dominance in the Precious Metals market, capturing the largest revenue share of 47.30% in 2022. China, as the leading consumer of gold and PGM, played a pivotal role, driven by a robust manufacturing sector and strong domestic demand. India, emerging as an alternative powerhouse, contributed significantly to the region's growth, fueled by a thriving jewelry sector and evolving manufacturing capabilities. Over the coming years, India is poised to play a key role in augmenting the global Precious Metals industry's growth.

North America's precious metal market is anticipated to grow at a noteworthy CAGR over the forecast period. The region benefits from easy access to silver resources in Mexico and a robust manufacturing base in the US and Canada. The streamlined value chain across these three countries is expected to positively influence market growth.

Competitive Landscape

Key players in the global precious metal market, including Freeport-McMoRan, Polyus, and Newmont Corporation, are navigating a landscape marked by fluctuating metal prices and geopolitical uncertainties. Collaborations and joint ventures, such as the renewable energy initiative at the Tropicana Gold Mine by AngloGold Ashanti, showcase industry participants' commitment to sustainability and reducing carbon emissions. Notable recent developments, including mine life extensions and renewed mining operations, exemplify the resilience and adaptability of major players in responding to market dynamics.

The key players in the global Precious Metals market include - Freeport-McMoRan Inc. (U.S.), PJSC Polyus (Russia), Newmont Corporation (U.S.), Gold Fields Limited (South Africa), Randgold & Exploration Company Limited (South Africa), Barrick Gold Corporation (Canada), AngloGold Ashanti Limited (South Africa), Kinross Gold Corporation (Canada), Newcrest Mining Limited (Australia) among others.

Recent Market Developments

• In July 2023, Barrick Gold extended the mine life of its Tongon gold project in Côte d'Ivoire, reflecting positive outcomes from gold exploration activities.
• K92 Mining Inc. announced the resumption of underground mining operations at the Kainantu Gold Mine in Papua New Guinea in July 2023, prioritizing safety and affirming unaffected production and cost guidance for 2023.
• Anglogold Ashanti introduced a pioneering renewable energy initiative at the Tropicana Gold Mine in June 2023, emphasizing a commitment to carbon emissions reduction through a collaboration with Pacific Energy.

Segmentation of the Global Precious Metals Market