Precious Metals Market Size, Regional Outlook, Growth Potential, COVID19 Impact Analysis, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI1435
Global Precious Metal Market size will expand over 2021-2027 with the growing demand for fine jewelry. Precious metals are elements that are regarded as rare and chemically inert. Since they are not abundant in the environment, they have a higher economic value in comparison to other base metals. Precious metals are most commonly used as investment vehicles, in industrial processes, and jewelry production. Some of the primary elements in the market include silver, gold, and platinum.
Precious metals such as silver and gold are also broadly used for investment purposes. In fact, gold, being one of the most renowned metal in the world, is widely held by central banks as insurance against hyperinflation or any other severe economic disasters. However, the element is not only famous for its economic connection but is also considered the most popular precious metals used for bullion investing.
Meanwhile, silver closely follows gold in these fields as secondary investment vehicle. Silver is also known as one of the most versatile precious metals, and its demand is mainly driven by various end-uses, ranging from medicine to silverware. As per the United States Geological Survey, in 2019, the mines in the U.S. produced up to 980 tons of silver, with a projected value of $510 million.
In terms of application, escalating demand for rhodium among auto manufacturers will shape the overall precious metals market outlook by 2027. The price of rhodium, which is known as a precious metal that can strip contaminants out of exhaust fumes, is increasing rapidly as car manufacturers across Europe and Asia are scrambling to meet increasingly tightening emission regulations.
On the regional front, the Asia Pacific is a big market for precious metals, both in terms of production and demand. Going forward, the regional industry will continue to show remunerative growth over the next few years. In 2019, China was one of the largest producers of gold across the globe, with a majority of the production coming from provinces like Henan, Fujian, Shandong, Yunnan, and Jiangxi.
The global precious metals market share consists of various major players such as Freeport-McMoRan, Franco-Nevada Corporation, Barrick Gold, Gabriel Resources Ltd, North American Palladium Ltd, Anglo American Platinum, First Quantum Minerals Ltd., Newmont Corporation, Vale S.A, and BHP Group among many others. Leading organizations are investing in the recycling of precious metals.
Citing an instance, in May 2021, BASF, a renowned chemical company, announced plans of expanding its Seneca-based, South Carolina PGM (Platinum Group Metals) refining facility. The firm would invest millions in capital enhancements to surge the refining capacity to recycle precious metals, mainly from spent catalysts like automotive catalytic converters. It is to be noted that recycled metal has up to 90 per cent lower carbon dioxide emissions in comparison to metal from basic mines. These metals can be reused in fresh catalysts, enabling a circular economy solution.
How is COVID-19 pandemic impacting precious metals market
The COVID-19 pandemic severely impacted various industries across the globe, disrupting supply chains and halting operations for numerous production units. The calamity also led to workforce unavailability and inventory shortages, impacting the market severely. For instance, in 2020, silver jewelry fabrication dropped sharply, wherein the levels dropped to 148.6 million ounces from 201.3 million ounces in 2019.
However, on the other hand, investments in precious metals went up tremendously as more people looked to more reliable investment vehicles in face of swiftly changing market conditions. Various customers turned towards purchasing bullions during these times, which elevated the production of bullion coins, expanding precious metals market share from investment applications.
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