The global precious metals market size is expected to gain momentum by reaching USD 403.08 billion by 2028 from USD 275.40 billion in 2021 while exhibiting a CAGR of 5.6% between 2021 to 2028. In its report titled, “Precious Metals Market, 2021-2028,” Fortune Business Insights™ mentions that the market stood at USD 261.94 billion in 2020.
The demand for precious type of metals is expected to rise globally owing to increased investment in jewelry. Moreover, gold and silver are some of the prime metals which are extensively used in South Asian countries, and the rising population in this region is adding more to the market. For instance, according to a report by the World Gold Council, in 2019, Indian households have accumulated up to 25,000 tonnes of gold, which makes India hold the tag of the world's largest holders of the metal.
Driving Factor
Increasing Disposable Income to Drive Market Growth
The rising disposable income and incessantly changing lifestyle choices are driving the precious metal market growth. For instance, the high demand for jewelry in wedding ceremonies of China, India, and other South Asian countries is projected to surge the consumption of precious metals. Additionally, gold is considered a safe haven for investment, as compared to equities, bonds, and crypto. As per the study by World Gold Council, ETFs and other investments accounted for 23% of the total gold demand in 2020. This is expected to drive the precious metals market growth in upcoming years.
Regional Insights
Asia Pacific to Dominate Backed by Increasing Consumption of Gold in the Region
Asia Pacific is expected to remain at the forefront and hold the highest position market during the forecast period owing to the presence of the largest electrical industry in the region. Countries such as China and India are contributing to the market as these countries are the largest consumers of gold. Furthermore, they are also partnering with foreign investors and international companies to boost the regional market. Asia Pacific stood at USD 135.04 billion in 2020.
Europe is expected to showcase significant precious metals market share in upcoming years, owing to the increased application of metals in the automotive industry. Furthermore, the rise in the fashion industry is supporting the consumption of jewelry in the region.
Competitive Landscape
Key Players to Focus on Collaborations and Acquisitions to Strengthen Their Positions
The market is consolidated by major companies striving to maintain their position by focusing on acquisitions. For instance, in May 2021, Newmont Corporation acquired an 85.1% share of GT Gold. With the acquisition, the company is aiming to strengthen its portfolio. The acquisition includes the Tatogga project, which will contribute to the production of copper and gold in the future.
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