THE GLOBAL PRECIOUS METALS MARKET: GROWTH PROSPECTS FOR 2024-2031/4

 

The ever-simmering sector of the global precious metals market continues to shine, driven by inexorable demand, as underscored by the optimistic projections outlining growth up until 2034. The precious metals market, encompassing gold, silver, platinum among others, has been a steadfast focal point in the fluctuating world economy.

 The global precious metals market size reached USD 219.4 Billion in 2024 and is expected to grow to USD 328.9 Billion by 2033, with a CAGR of 4.6% during 2025-2033

 As per the Q1 2024 data, gold demand grew by 3% year-on-year, translating to 1,238 tonnes. Fast forward to the third quarter, the demand increased by a further 5% on a yearly basis, accounting for 1,313 tonnes. A crucial aspect energizing the market has been the central banks, which added a substantial 290 tonnes (net) to their official holdings in Q1 2024 alone.

In January 2025, central banks reported net purchases of 18 tonnes of gold for the month. Central banks have purchased approximately 2,700 tonnes of gold since 2022, which represents the fastest pace of accumulation in recent history.

 The World Gold Council expects central bank demand to continue providing a boost to gold in 20256.

This ongoing trend of central bank gold purchases is likely to remain a key factor in gold's performance throughout 2025, as it reflects a strategic shift towards diversification of reserves and reduced dependence on traditional currencies like the US dollar

 Mirroring the trends in gold, the silver market also indicates dynamic growth. Projections for 2025 suggest that the global silver market will witness a sizeable deficit for the fifth year running. Altogether, the total global silver supply is projected to grow by 3% in 2025, escalating to an 11-year high of 1.05 billion ounces.

 Turning to the price predictions, some analysts forecast gold reaching $3,500-4,000 by 2028-2029, citing continued currency debasement and its role as an inflation hedge. As for the silver market, some forecasts suggested silver could reach $50-60 by 2028-2029, potentially outperforming gold due to its dual role as both monetary and industrial metal.

The gold-to-silver ratio was expected to narrow from its historical levels, suggesting stronger relative performance for silver.

 It is important to bear in mind that the volatility of market conditions heavily influences these forecasts. Factors such as geopolitical tensions, economic cycles, and technological advancements can have dramatic impacts on the projections, underscoring the need for continuous monitoring and nuanced understanding of the market.

 The global precious metals market, rooted in centuries of economic history, continues to navigate through the waves of the ever-changing global economic fabric, promising a future of enduring growth and transformation.

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