"Innovative Market Solutions to Help Businesses Make Informed Decisions"

Precious Metals Market Size, Share & COVID-19 Impact Analysis, By Type (Silver, Gold, and Platinum Group Metals), By Application (Industrial, Jewelry, Investment, and Others), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI105747

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global precious metals market size was USD 261.94 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with the product witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 2.0% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 275.40 billion in 2021 to USD 403.08 billion in 2028 at a CAGR of 5.6% during the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


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.


Halt on Mining Activities amid the COVID-19 Pandemic Will Restrain the Market


The onset of the pandemic in January 2020 perpetrated significant damage to the precious metals 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.


LATEST TRENDS


Request a Free sample to learn more about this report.


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.


DRIVING 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.


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.


SEGMENTATION


By Type Analysis


To know how our report can help streamline your business, Speak to Analyst


Gold Segment Held the Dominant Position in 2020 Driven by High Demand for Jewelry


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


Gold occupied the dominant share of the market in 2020. 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 Precious Metals Market Share during the Forecast Period


Based on the application, the 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


Asia Pacific Precious Metals Market Size, 2020 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


The market size in Asia Pacific stood at USD 135.04 billion in 2020. The region held a dominant share of the market in 2020 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.


To know how our report can help streamline your business, Speak to Analyst


The growth of the 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.


KEY INDUSTRY PLAYERS


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.)

  • PJSC Polyus (Russia)

  • Anglo American Platinum Limited (South Africa)

  • Impala Platinum Holdings Limited (South Africa)

  • Other Players


KEY INDUSTRY DEVELOPMENTS:



  • 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


An Infographic Representation of Precious Metals Market

To get information on various segments, share your queries with us



The market research report provides a detailed precious metals 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 market over recent years.


Report Scope & Segmentation














































  ATTRIBUTE



  DETAILS



Study Period



2017-2028



Base Year



2020



Forecast Period



2021-2028



Historical Period



2017-2019



Unit



Volume (Kiloton); Value (USD Billion)



Segmentation



By Type, By Application and By Geography



By Type




  • Silver

  • Gold

  • Platinum Group Metals



By Application




  • Industrial

  • Jewelry

  • Investments

  • Others



By Geography



North America (By Type, By Application, By Country)





    • The U.S. (By Type)

    • Canada (By Type)




Europe (By Type, By Application, By Country)





    • Germany (By Type)

    • The UK (By Type)

    • Italy (By Type)

    • Rest of Europe




Asia Pacific (By Type, By Application, By Country)





    • China (By Type)

    • Japan (By Type)

    • India (By Type)

    • Rest of Asia Pacific (By Type)




South America (By Type, By Application, By Country)





    • Brazil (By Type)

    • Rest of South America (By Type)




The Middle East & Africa (By Type, By Application, By Country)





    • GCC (By Type)

    • Rest of the Middle East & Africa (By Type)





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 261.94 billion in 2020 and is projected to reach USD 403.08 billion by 2028.

In 2020, the Asia Pacific market value stood at USD 135.04 billion.

Registering a CAGR of 5.6%, the market will exhibit decent growth in the forecast period (2021-2028).

The gold segment is expected to lead this market during the forecast period.

The increasing disposable income and changing lifestyle choices is the major factor driving the growth of the market.

Newmont Corporation, Barrick Gold Corporation, and Kinross Gold Corporation are the major players in the market.

Asia Pacific dominated the market in terms of share in 2020.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
Precious Metals Market Size, Share and Global Industry Trend Forecast till 2026
  • Aug, 2021
  • 2020
  • 2017-2019
  • 160

    CHOOSE LICENSE TYPE

  • 4850
    6850
    8850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Chemicals & Materials Clients

UBS
Citibank
Samsung
Iwatani
Petronas

Client Testimonials

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X