According to a report by Fortune Business Insights, the global precious metals market is poised to exceed $400 billion in the next five years. The market is expected to reach $403.1 billion by 2028, driven primarily by gold. The report highlights the relatively low risk of investing in precious metals, making them an attractive option compared to equities, bonds, or real estate. Gold investment demand is projected to be the primary driver of market growth as investors seek the metal for wealth protection in an inflationary environment.
Additionally, the growing demand for silver in the solar power industry and the use of platinum and palladium in the automotive sector will contribute to the overall demand for precious metals. Increasing disposable incomes and changing lifestyle choices, particularly in Southeast Asian countries, will also boost the jewelry market’s demand for gold, silver, and platinum. With these factors in play, the precious metals market is expected to experience a compound annual growth rate of 5.6%.
Key Points
– The global precious metals market is projected to reach $403.1 billion by 2028, up from $275 billion in 2021.
– The compound annual growth rate (CAGR) for the precious metals market is expected to be 5.6%.
– Gold investment demand is a primary driver of market growth, as it is considered a low-risk investment compared to other options.
– Investment in physical gold drove overall gold demand to an 11-year high in 2022, with a 10% increase year-on-year.
– Silver demand is expected to increase due to its use in the electrical and electronics industry, particularly in solar panels.
– The green energy drive will likely put a significant squeeze on silver supply in the coming years.
– Platinum and palladium demand will be boosted by their use in the automotive industry, particularly in catalytic converters to curb pollution.
– Growing global demand for jewelry, driven by increasing economic prosperity and changing lifestyle choices, will contribute to market growth.
– Increasing disposable incomes and changing lifestyle choices are factors driving the demand for precious metals, particularly gold and silver, in wedding ceremonies in Southeast Asian countries.
According to a report by Fortune Business Insights, the global precious metals market is projected to exceed $400 billion within the next five years. The report highlights the dominance of the gold market as a major driver of this growth, with the market expected to reach $403.1 billion by 2028, up from $275 billion in 2021.
The report also emphasizes the relatively low risk associated with investing in precious metals, which has led to increasing investments in gold compared to other options such as equities, bonds, or real estate. Additionally, the demand for gold, silver, and platinum in jewelry production has contributed to market growth.
Investment demand for gold has been particularly strong, with physical gold investment driving overall gold demand to an 11-year high in 2022. The report notes that gold’s low-risk factor compared to other investments has fueled this growth. Demand for gold bars and coins has also increased, with global investors purchasing 1,217 tons in total.
Silver demand is expected to rise due to its use in the electrical and electronics industry, especially in solar panels. However, this growing demand for silver in the solar power industry may lead to supply shortages in the coming years. Scientists predict that solar manufacturers will require over 20% of the current annual silver supply by 2027, and by 2050, solar panel production could use up to 85-98% of the global silver reserves.
The automotive industry’s use of platinum and palladium in catalytic converters is another factor driving demand for precious metals. The report highlights platinum’s ability to capture harmful emissions, making it increasingly valuable in curbing pollution. Governments worldwide’s focus on reducing carbon emissions has also contributed to the demand for platinum.
The report concludes that the growing global demand for jewelry, driven by increasing economic prosperity and changing lifestyle choices, will further boost the demand for gold, silver, and platinum over the next five years.
Overall, the projected compound annual growth rate (CAGR) for the precious metals market is 5.6%, indicating a positive outlook for the industry in the coming years.
