In 2021, the global market for precious metals reached $192.9 billion. Considering the ongoing trends, by the end of 2027, the demand may be expected to touch $254.3 billion. Yet, the market for precious metals is highly susceptible to demand and supply pulls and pressures. The COVID pandemic has severely hit the end-use industries in manufacturing hubs like China. The requirements generated by these end-use industries will determine the eventual demand projection.
Precious metals are so coveted because of their physical properties. Not only are they lustrous, but they are rigid and their chemical properties are non-reactive. Precious metals like gold, silver, and platinum are malleable, ductile, resistant to corrosion and chemicals, and are great conductors of electricity and heat. These properties of precious metals make them so sought after by industries like consumer electronics, medical gadgets, jewelry, and automobiles. Not to mention that all precious metals are also relied upon as valuable assets by international investors.
The gold Price in the USD is expressed as the cost of a Troy Ounce of gold in dollars. Gold is considered by most investors a tangible investment. That is why it is regarded as a haven in the investment world. Investors are at present relying on Gold to hedge against the projected inflation in the coming new year. Gold is a sought-after commodity to hedge against inflation. That is why gold prices soared to $1895 per ounce, pushed by inflation in 2011. On December 23rd, gold prices stood at 1800.70, remaining unchanged for the past few days. Still, the last trading day of the year saw gold prices increasing to $1,1818.70 per Troy Ounce. A weak dollar is pushing the rise in the prices. Yet, good bond yields are restraining a forward thrust.
Silver indeed rallied from $23 per ounce to $23.96 by the end of the last week of the year. The price of silver had been excellent in the previous few weeks. After a fall during the COVID pandemic, silver has shown a rise in price as investors are lining behind silver as a favored investment asset. This buoyancy is not merely being supported by upbeat investor sentiment. The industrial usage of silver has also seen an increase. As per the Silver Institute, the global consumption of silver has risen by 9 percent to stand at 508.2 million ounces. A pick in consumer electronics sales is further expected to nudge silver even higher.
Again, as the previous week, platinum is outperforming other metals. Since last September, it has buoyed by 23 percent to trading above $1000. The rise has much to do with the geopolitical instability ensuing from a glitch in Russian supplies. Moreover, in the coming times, manufacturers may switch from Russian palladium to platinum to meet financial and ethical concerns.
No wonder, for a savvy investor, it is a good time to invest in metals. Silver, platinum, and palladium are the commodities to look for. They are a must-add to any sensible investment portfolio.