Introduction
Precious metals are naturally occurring rare metallic elements having significant economic value. They have high luster, usually ductile which tend to be less reactive than most elements. Precious metals are primarily regarded as investments and industrial commodities. Platinum group metals and gold are some of the most prominent precious metals present in the industry.
They are used widely used for investment purposes and jewelry owing to their aesthetics. It is usually sold in stock exchange markets associated with falling share prices attributed to its escalating high prices.
Despite the current pandemic situation, the precious metal producers are recovering their operations in full capacities from 2021 beginning. Along with this, the recovering industrial activities across the globe are expected to mitigate to numerous potential negative impacts caused during COVID-19 and maximize their opportunities in future.
Table of Contents
Market Overview
The global precious metal market is expected to grow to $189.40 billion by 2025
Growth momentum is expected to accelerate during the forecast period with a 9.12% CAGR.
Demand for the product in jewelry application is likely to emerge as an influential factor for the industry growth over the forecast period.
APAC is dominating the market due to the vast utilization of precious metals by India, Japan, and China
Key Trends
Growing demand for palladium in catalytic converters in the automotive industry in vehicles exhausts are anticipated to propel the demand for the market in the coming years.
The use of gold, specifically in the jewelry industry, is projected to witness steady growth during future.
Key Market Players
Some of the key players in the market are Freeport-McMoRan, Polyus Gold International, Gold Fields, Newmont, AngloGold Ashanti, Barrick Gold
The industry participants are focusing on creating joint ventures to explore and mine precious commodities in African countries, wherein large untapped reserves are yet to be discovered. The new upcoming mining projects are likely to play a key role in supporting the ever rising demand for precious commodities.
Growth Drivers and Challenges
The rising demand from various end-user industries such as electrical and electronics, automotive are driving the market demand.
Increasing prices for coinage precious metals such as gold and high growth in emerging economies coupled with rising disposable incomes of the individuals are driving the market demand for the precious metal.
Maintaining the shiny luster and color of precious metal is restraining the market demand.
Technical issues and diminishing ore grades of these metals are expected to hamper the growth of the market.