The $3.8 trillion gold and silver market is booming as demand for metal from the energy sector grows
The U.S. gold and precious metal market is growing like never before, and it’s not slowing down anytime soon.
As demand for metals from the renewables sector, auto-parts, automotive and aerospace sectors skyrocketed in recent years, the U.N. World Economic Forum (WEF) estimated in its annual Global Economic Outlook report that demand for the precious metal was up 40 percent in 2020.
It expects the number of global gold and platinum mining companies to grow from 6,400 in 2020 to 12,400 by 2025.
The U to Z, a new gold and diamond market report released Thursday, estimated that by 2025, global demand for gold will reach 2,300 metric tons.
But the demand for platinum is growing faster than gold, according to the International Gold Association (IGA), an industry trade group that promotes the development of the global precious metal industry.
The IGA said the growth in demand for precious metals comes as gold and palladium mining operations are expanding globally.
Platinum is a precious metal that is used in jewelry, watches, watches and jewelry, and is considered a “gold standard” in precious metals.
It has been gaining in value due to increased demand for it, IGA Director of Research and Policy David Tse said in a statement.
Gold demand in China is soaring and rising faster than the global demand, and the IGA’s research shows that in 2020 demand for palladium, a rare earth metal, will hit 7.3 billion metric tons, up from 6.2 billion metric tonnes in 2020 and 5.6 billion metric ton in 2025.
The new gold demand from the renewable sector is also growing faster, according the IGa.
Demand for non-hydrogen, solar and wind-generated gold is forecast to hit 1.9 billion metric to 2.4 billion metric metric tons by 2025 and 2.5 billion to 3.5 trillion metric tons in 2025, respectively.
Gold mining in Africa has also expanded significantly, reaching an all-time high in 2017.
In 2020, gold and copper mining accounted for 6.6 percent of Africa’s total output.
The IGA projects that by 2020, non-metallic metals production will reach 18 percent of total production, and that by 2030, the share of non-heavy metals will reach 33 percent.
In 2020, the IGAs Global Sustainable Mining Index, which measures gold and non-gold metals, projects that Africa will account for 51 percent of the world’s gold demand by 2025.(Reuters/Thomas Peter)Meanwhile, China has increased its share of the gold and rare earth metals market to nearly 30 percent, with the IGAS predicting that by the end of 2025, China’s share of total demand for nonhydrogen-based metals will be nearly 30 million metric tons and its share will be around 17 percent.
China’s mining and nonmetallic metal production is projected to reach 5.2 trillion metric ton by 2025 compared with 5.1 trillion metric in 2020, according TOGAF’s Global Sustainable Mineral Demand for the 21st Century.
In 2025, nonhydronals demand will rise to 7.4 trillion metricton and its supply will reach 1.3 trillion metric.
In the energy market, solar-generated renewable energy accounts for about 25 percent of all gold and nickel mines worldwide, according IGA data.
The demand for these precious metals has been growing rapidly in recent months as a result of government policies aimed at boosting solar energy in Africa, particularly in the South.
In 2018, the United States announced it would cut subsidies to Chinese mining companies in the energy industry.
A few months later, the World Bank, the IMF and the African Development Bank agreed to a $25 billion loan to boost solar-produced renewable energy in sub-Saharan Africa, a move welcomed by the United Nations and China.
The U.K. is also increasing its use of solar energy, and on Friday it announced a $5 billion loan for solar-power plants.
In addition, the Bank of China, which has a $1.6 trillion market cap, will invest $1 billion in a $2 billion plant to supply power to Africa.
In the U.-S., China is also expanding solar-related production and investment.
In 2019, the world added more than 200,000 metric tons of solar-powered equipment to its grid.
In 2024, the global market was valued at $8 billion.