Precious Metal Market Size, Share, & Trends Analysis Report By Product (Gold, Silver, PGM), By Application (Jewelry, Industrial, Investment), By Region, And Segment Forecasts, 2023 - 2030

Precious Metal Market Size & Trends

The global precious metal market size was valued at USD 241.31 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.8% from 2023 to 2030. Demand for the product in jewelry application is likely to emerge as an influential factor for the industry growth over the forecast period. The use of gold, specifically in the jewelry industry, is projected to witness steady growth over the coming years. The commodity of gold has been an internal part of marriages, especially in India and China, wherein a significant amount of product is used in the form of jewelry and ornaments. For instance, India's wedding space observed nearly 2.5 million marriages annually with a total market estimation of more than USD 40.27 billion in 2021. Similarly, China's marriage space witnessed nearly 6.83 million marriage registrations in 2022. The wedding market space of China and India is thus likely to present numerous growth opportunities for the gold jewelry market segment over the coming years.

In the U.S., the total production of precious metals was evaluated at around 1,195.6 tons as per the stats released by the United States Geological Survey (USGS) in 2020. Within this category, gold production reached nearly 200 tons in 2019, and approximately 15.6 tons for platinum group metals (PGM). PGM resources were mined in Montana by Sibanye-Stillwater, which is the sole producer of PGM in the U.S.

The jewelry sector accounted for a key share of the U.S. precious metals industry while capturing nearly 40% share in terms of volume as of 2019. The concentration of gold jewelry vendors in the states of New York, Rhode Island, California, Texas, and Florida consumed nearly 50% of the product demand in 2019.

In December 2022, there was a slight recovery in precious metal prices, but they remained significantly below their March 2022 highs. Rising interest rates and a strong U.S. dollar are prevailing factors that outweighed gold demand. Gold prices were negatively affected by soft consumer and investment demand, but robust central bank purchases offered some support. On the other hand, silver prices were hampered by weak industrial demand, while platinum prices rebounded more strongly, reflecting a recovery in autocatalyst demand and supply challenges.

Product Insights

The gold segment accounted for the largest revenue share of 82.3% in 2022 due to its high trading prices and greater usage in the jewelry sector. The gold production for 11 years is witnessing continuous growth with new mines commissioned in 2019. Among these, the Meliadine mine by Agnico Eagle Mines Ltd. and Gruyere mine by Gold Fields Ltd., and Gold Road Resources Ltd. were planning to add a major chunk of the new production. Thus, new product additions are likely to further aid the demand trend of the commodity over the coming years.

The silver segment is projected to grow at a CAGR of 2.7% over the forecast period. The market is segmented into gold, silver, and platinum group metals (PGM). Silver is likely to grow steadily over the forecast period owing to its wide usage across the industrial and jewelry sector, coupled with low cost as compared to its counterparts. Mexico and Peru are projected to remain the key production hubs for silver commodities. According to the United States Geological Survey, Mexico’s silver production was 6,300 metric tons, followed by Peru at 3,100 metric tons as of December 2022. Other key producing nations are Russia, China, Australia, and Chile.

The PGM product segment is likely to witness sluggish growth as compared to its counterparts over the forecast period. The downturn in automotive vehicle manufacturing is already impacting the demand traits of platinum and palladium.

Application Insights

The industrial application segment held the largest revenue share of 45.5% in 2022. The segment growth is largely attributed to the growth of the electrical and electronics sector, wherein the majority of silver commodity is used for various purposes.

The jewelry segment is the second largest application of the product. The sector despite its turbulent times is likely to create healthy prospects for the global precious metals industry over the forecast period. The steady consumption traits in the gold jewelry sector of China and India are likely to remain a key driver in the upcoming years. The wedding industry of both countries offers round-the-year opportunities for the jewelry market space vendors, thereby assisting the demand for precious commodities, such as gold and silver.

The investment segment is expected to grow at a CAGR of 6.5% over the forecast period. The ongoing declining prices of platinum have generated greater attention from Japanese investors, which are likely to continue their strong purchase behavior. The country’s investors are significantly focused on PGM commodities due to the wider discount rates as compared to its counterparts.

Regional Insights

Asia Pacific dominated the market and accounted for the largest revenue share of 59.0% in 2022. The region comprises the upcoming global powerhouses, such as India, Japan, and China. Among these, China has the widest influence over the market space of the precious metals industry. The country is the leading consumer of gold and PGM as of 2019. The strong domestic manufacturing sector of China is the key factor driving the demand for the aforementioned commodities in the country.

Another key factor propelling market growth is the emergence of India as an alternative powerhouse in the region. The country is the second largest consumer of gold commodities in the Asia Pacific. The country also has a strong jewelry sector owing to the humongous wedding industry. Similarly, the country is also evolving its manufacturing capabilities by attracting foreign investment in the fields of chemical, energy, automotive, construction, and many more. Therefore, over the coming years, India is likely to play a key role in augmenting the growth of the global precious metals industry.

North America’s precious metal market is anticipated to grow at a CAGR of 6.9% over the forecast period. The easy availability of silver resources in Mexico and a strong manufacturing base in the U.S. and Canada are likely to push the market growth of precious metals in the region. In addition, the streamlined value chain of these three aforementioned countries is expected to play a crucial role in positively influencing market growth over the coming years.

Europe is likely to witness slow growth as compared to its counterpart regions owing to the slowdown in the industrial as well as the jewelry sector. The region is facing prime challenges in the form of stability due to the severe impact of the coronavirus.

Key Companies & Market Share Insights

A key move by the European Union and the U.S. government to track the original sourcing of the commodity is likely to assist in limiting the black market activities of the precious commodities. The regulatory bodies of the aforementioned regions have pushed the vendors of the market to provide full disclosure details regarding the sourcing of commodities and their point of origin.

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, thereby offering numerous opportunities for market vendors. The following are some of the major participants in the global precious metal market:

• Freeport-McMoRan

• Polyus

• Newmont Corporation

• Gold Fields Limited

• Randgold & Exploration Company Limited

• Barrick Gold

• AnglogoldAshanti

• Kinross Gold Corporation

• Newcrest Mining Limited

Recent Developments

• In July 2023, Barrick Gold disclosed the extension of the mine life for its Tongon gold project in Côte d'Ivoire. This decision comes as a result of the ongoing positive outcomes from gold exploration activities within the Nielle mining permit area. Originally established in 2010 with an expected closure in 2021, the company filed documentation in 2021 to extend the mine’s life until 2026.

• In July 2023, K92 Mining Inc. announced the resumption of underground mining operations at the Kainantu Gold Mine in Papua New Guinea. The restart was conducted by a comprehensive restart plan prioritizing safety, following a tragic incident involving an underground vehicle. Notably, the impact on surface activities has been minimal, and surface stockpiles have undergone processing in the designated plant. K92 Mining Inc. affirms that its production and cost guidance for 2023 remains unaffected by these events.

• In June 2023, AnglogoldAshanti introduced a pioneering renewable energy initiative at the Tropicana Gold Mine, signifying a notable achievement in its commitment to carbon emissions reduction. In collaboration with Pacific Energy, AngloGold Ashanti Australia Ltd, is undertaking the construction and operation of an extensive 62MW solar and wind production capacity at the mine. This partnership aims to integrate renewable energy sources into the mine's power supply infrastructure, thereby reducing reliance on gas consumption.

Precious Metal Market Report Scope

Global Precious Metal Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global precious metal market based on product, application, and region:

• Product Outlook (Revenue, USD Million; Volume, Tons, 2018 - 2030)

  • Gold

  • Silver

  • PGM

• Application Outlook (Revenue, USD Million; Volume, Tons, 2018 - 2030)

  • Jewelry

  • Industrial

  • Investment

• Regional Outlook (Revenue, USD Million; Volume, Tons, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Russia

    • Switzerland

  • Asia Pacific

    • Japan

    • China

    • India

    • Vietnam

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa (MEA)

    • Qatar

    • Saudi Arabia

    • UAE