Since ancient times, the demand for precious metals has been increasing. These metals are significant for investment purposes. Most people are fascinated by metals, which are crafted with a unique design that is commonly used for jewelry and other home décor purposes. Moreover, the increasing disposable income and lifestyle choices significantly contributed to the surge in demand for precious metals. Do you know metals are ductile and have high luster? Further, they are rare and have high economic value.
The global precious metals market size is expected to hit USD 403.08 billion by 2028, recording a steady 5.6% CAGR during the forecast period (2022-2028). The growing automotive & electrical industries are accelerating the demand for metals. Silver, gold, and platinum are the most prominent precious metals in the industry. Others include osmium, rhodium, palladium, and iridium.
Halted Mining Activities during COVID-19 Pandemic Restrain Metals Demand
The emergence of the COVID-19 pandemic witnessed significant damage to the market for precious metals. Decline in mining activities and manufacturing facilities to control the spread of the virus reduced the product demand. Further, lack of electronic production slowed down the economic rate of metals. However, the growing global investment in metals is likely to recover the damage during the pandemic.
Benefits of Precious Metals:
- High liquidity
- Price fluctuations
- Good for investment
- Immunity to inflation
- Easily available
- Price variation
How are Metals Responsible for Changing Lifestyle?
The growing urbanization leads to changes in lifestyle choices. Today’s generation demands traditional metals with the latest design. Metals are primarily used in marriages, and this tradition is followed almost worldwide. Further, gold is a status symbol and a wise investment choice. It is even sold in the stock exchange market. Aesthetic design in metals increases its value and is ideal for fashion jewelry.
Usage of Precious Metals in the Industrial Sector
Automotive industries are the critical consumers of palladium and platinum, with primary application in the catalytic converter. The rising demand for consumer electronic products in the electronic industry will surge the consumption of silver. Further, the growing awareness of environmental pollution and government initiatives to control carbon emissions surges the product demand. In addition, solar panel manufacturers demand silver metals to conduct electricity with high efficiency, aiding the market growth.
What is the Reason Behind the Huge Purchasing Demand for Precious Metals?
Today’s generation is aware of several investment techniques, and purchasing gold is like a long-time investment and is even used for jewelry purposes. Developing countries, such as China and India, are the major consumers of gold as more and more people have rising spending capacity. Further, metals are thought to be a good portfolio in mutual funds and mining company stocks. It is an excellent choice for a lifetime’s worth of savings.
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Strategies Adopted by Market Players
The key players present in the market such as 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), and Impala Platinum Holdings Limited (South Africa). These players are enforcing approaches similar to common gambles to probe and mine precious minerals. They are likely to concentrate on unexplored large reserves in the African region. New precious mineral mining systems sanctioned by private companies and regulated by the governments are likely to support the rising demand. To expand its presence and fulfill the need for gold in the future, Newmont Corporation is concentrating on acquiring mining spots and forming partnerships.
About the Author:
Tanisha Bhattacharjee is an M. A graduate in English. She is passionate about reading & creative writing. Her interest is also found in dance & music.