Global Precious Metal Market is thriving as a result of rising investors’ interest to store money and look for value growth in precious metals, rising disposable income, and changing lifestyle preferences along with the widespread use of jewelry in wedding ceremonies in China, India, and other South Asian nations.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Global Precious Metal Market was worth USD 240.5 billion in the year 2021. The market is projected to grow at a CAGR of 8.1%, earning revenues of around USD 415.3 billion by the end of 2028. The Global Precious Metal Market is booming because of the increasing demand from end-use industries. Also, the concerns about the environment and its legal repercussions. Moreover, the industry is expanding as a result of changing lifestyles and rising disposable incomes among consumers. Furthermore, governments in many countries are enacting rigorous emission rules, which is fueling market expansion because these metals are used to cleanse exhaust emissions in automobiles. However, in response to the escalating number of cases of the coronavirus disease (COVID-19), governments in several countries have declared total lockdowns as a precautionary step to battle the pandemic. This has disrupted supply networks and brought multiple production units to a halt, causing a chain reaction. On the other hand, as a means of surviving the quickly shifting market conditions, investments in precious metals have surged.
Increasing Trading Activity in Precious Metals
The increase in precious metals trading activity is encouraging the market’s expected expansion. Both the rise in the number of weddings where jewelry is frequently worn and the rising popularity of plated jewelry among young people are driving the industry. For instance, South Korean youth have emerged as a key group for luxury goods sales, which increased by seven times between 2017 and 2019, according to Statistics Korea statistics released in March 2021. Because consumer purchasing power is dwindling and consumers are being compelled to spend their money more wisely on essentials, COVID-19 has had an impact on economic activity.
Request for Sample Report @ https://www.blueweaveconsulting.com/report/precious-metal-market/report-sample
Consumers’ Purchasing Power is Rising
People’s changing lifestyles and increased disposable income are driving the market growth. Due to growing environmental concerns, prominent market companies across a variety of industry verticals are investing in the recycling of precious metals that can eventually be utilized to manufacture heart pacemakers and artificial cochlea. Furthermore, governments in many countries are establishing severe emission regulations, which is aiding market expansion because these metals are used to clean car exhaust gases. During the forecast period, all of these factors contribute to the growth of the Global Precious Metal Market (2022-2028).
Challenge: Price Turbulence
Along with a few disadvantages of precious metals investing, there are additional risks that investors should be aware of. One of the major sources of volatility is prices. Numerous variables, including changes in the economy, Federal Reserve policy, investor demand, mining supply, and inflation, can have an impact on precious metals prices. Because they don’t have any cash flow, a person won’t be able to profit from precious metals. If a person owns the metal outright, the investment also includes a storage cost. Additionally, jewelry and other tangible gold items are always at risk of theft due to their great value and expense.
Segmental Coverage
Global Precious Metal Market – By Application
Based on application, the Global Precious Metal Market is segmented into Jewelry, Investment, Electricals, Automotive, Chemicals, and Others. Among these, the electrical segment holds the largest market share. The growth of the electrical and electronics industry, where the majority of silver is used for a variety of purposes, is mostly to blame for the segment’s rise. The jewelry sector is the product’s second-largest use. Despite hard times, the sector is expected to generate strong prospects for the global precious metals company during the forecast period. China and India’s steady spending patterns in the gold jewelry market will most likely remain a prominent driver in the coming years. Weddings in both countries provide year-round opportunities for jewelry market space vendors, helping to drive up demand for pricy commodities such as gold and silver. All these factors boost the growth of the Global Precious Metal Market during the forecast period (2022-2028).
Impact of COVID-19 on Global Precious Metal Market
Several sectors have been impacted by the COVID-19 pandemic-induced lockdown and economic catastrophe. The worldwide pandemic problem, on the other hand, is expected to create a significant drop in commodity demand. The United States is one of the countries most badly afflicted by the coronavirus, and the unemployment rate will be at an all-time high by the end of the first quarter of FY2020. The country has had its greatest unemployment rate since the Great Depression. With over 20.5 million people losing their jobs in April 2020, the unemployment rate rose to nearly 14.7%. Within this drastic decreasing trend, the country’s precious metals industry is expected to have stopped growth in the short term.
Competitive Landscape
The leading market players in the Global Precious Metal Market are Newmont Goldcorp, Barrick Gold, AngloGold Ashanti, Hycroft Mining Corporation, Anglo American, Freeport-McMoRan, Goldcorp Inc., Kinross Gold Corporation, Lonmin Plc, Newmont Mining Corporation, Russian Platinum, Norilsk Nickel, Pan American Silver, Asahi Refining (US), Sumitomo Metal Mining Co., Ltd. (Japan), and other prominent players. The Global Precious Metal Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
Contact Us:
BlueWeave Research Blog
Phone No: +1 866 658 6826
Email: info@blueweaveconsulting.com