Europe and US to dominate precious metals market
February 29 2016 - 11:30AM
Property
29/01/2016
Photo: US Geological Survey
The precious metals market is forecast to grow in
the coming years, driven by a rise in demand from Europe and the
Americas.New research predicts that the market will grow 4 per cent
CAGR between 2015 and 2019, as sales climb for gold, silver,
palladium and platinum. Gold has had a rocky period in recent
months and years, as its appeal as a safe haven has been buffeted
by global financial uncertainty and political turmoil, as well as
improving economic conditions in the US and a strengthening
dollar.Platinum, however, remains in strong demannd due to its use
in the industrial sector. Indeed, platinum is now forecast to be
the major driver of growth in the precious metals market.One factor
in the sector’s future is a ban on mining the metals: the release
of toxic gases and dust can negatively impact the health of
workers, which has led to the activity being prohibited in
countries such as India, Cuba, Iran, Israel and Libya. Nonetheless,
the amount of precious metals produced globally is also forecast to
climb, from 1.3 billion ounces in 2013 to 1.59 billion in
2019.While platinum will be a key driver in the market’s future,
silver is also an increasingly important player, accounting for 86
per cent of the market during 2014. This is thanks to its use in
photovoltaic devices, as well as its central role in the jewellery
sector. The US, China, India, Japan, and Russia were the top five
consumers of silver during 2014.India has traditionally been one of
the biggest markets for precious metals, particularly for gold. The
study, though, predicts that both Europe and the Americas will
overtake and dominate the precious metals market during the coming
four years. "Financial institutions are increasingly investing in
precious metals because precious metals are speculative in nature,
and may either move in prices either up or down, depending on the
bankers expectations," says the report.Technavio / Commodity
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