Gold Industry Overview

Strong Macro-Economic Trends have Driven Gold to All-Time-Highs in 2024

Gold has historically been a critical asset due to its dual role as a store of value and an industrial metal. In 2024, gold reached an all-time high of $2,787 per ounce in October, reflecting strong macroeconomic trends and growing global demand. Year-to-date, gold prices have increased by 28.1%, driven by a combination of geopolitical uncertainty, inflationary pressures, and robust buying from central banks and industries.

Central banks have significantly influenced gold demand, purchasing 483 tonnes in the first half of 2024¹. This reflects a strategic shift toward diversifying reserves and reducing reliance on fiat currencies amid global economic uncertainties. In the second quarter of 2024, the electronics sector saw a 14% year-over-year increase in gold demand, totaling 67.6 metric tonnes, while the technology sector saw an 11% year-over-year increase in gold demand, totaling 81.1 metric tonnes². The continued recovery was primarily due to high-end chips used in growing applications such as AI and high-performance computing.

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Key Drivers of Gold Demand

• Investment and Reserve Diversification: Gold serves as a hedge against inflation and currency depreciation. Central bank purchases underscore its reliability as a stable asset during volatile times.
• Industrial Use: The expansion of technology and electronics markets has bolstered gold’s industrial demand. Its unique properties, such as conductivity and resistance to corrosion, make it indispensable for cutting-edge applications.
• Jewelry: Traditional markets for gold jewelry, particularly in Asia and the Middle East, continue to support demand due to cultural and ceremonial importance.

Market Outlook and Future Trends

The structural demand for gold is expected to remain strong. The interplay of economic uncertainties and technological advancements will likely maintain upward pressure on gold prices. With consistent central bank purchases and innovative applications in emerging technologies, gold remains a vital component of global financial and industrial ecosystems.

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Silver Industry Overview

Silver Macro Landscape Overview

Silver Hitting Five-Year Highs, Driven by Robust Demand from Industrial & Consumer Applications

Silver has emerged as a critical industrial and investment asset in 2024. Its year-to-date performance showcases a remarkable 29.0% price increase, reaching three-year highs in the second half of 2024. This surge is attributed to robust demand from industrial applications, consumer markets, and delays in scaling production.

Silver’s role as a cornerstone of the global energy transition, particularly in renewable technologies, has been pivotal. Solar panel manufacturing alone is projected to constitute 19% of global silver demand in 2024, marking a 20% increase from the previous year.

Key Drivers of Silver Demand

• Industrial Applications: Silver’s superior electrical and thermal conductivity make it indispensable in manufacturing sectors, particularly for renewable energy, electronics, and automotive industries.
• Energy Transition: As the global energy landscape shifts toward renewables, silver’s usage in photovoltaic (solar) cells has soared. This trend underscores its growing role in addressing climate change
• Consumer and Investment Demand: Beyond industrial applications, silver remains popular for jewelry and investment purposes, supported by its relative affordability compared to gold.