Not many would think that the allure of gold, silver, and other precious jewels goes beyond their sparkle. If you’re wondering just how special these gems are – the answer lies in their ever-increasing market value. Surprising? Well, believe it or not, the global market of these shimmering substances is expected to rise a whopping USD 403.08 billion by 2028. From a decidedly impressive USD 275.40 billion in 2021, this represents a steady 5.6% increase each year from 2021 to 2028. Such a sizable leap!
Investing in Glittering Commodities
Despite the kerfuffle caused by other potentially profitable ventures such as stocks, real estate, and bonds, gold – gold buffalo coins in particular – remain a sturdy low-risk investment. It steadily shines, proving its market resilience, in comparison to the riskier options. This, along with the high demand for jewelry made from these metals, contribute to their market growth. Long story short – gold, silver, and platinum aren’t going anywhere anytime soon!
Masters of the Trade
Investing in these priceless commodities isn’t as daunting as it seems, especially with big players in the picture. Companies like the US-based Newmont Corporation, Canada’s Barrick Gold Corporation and Kinross Gold Corporation, South Africa’s AngloGold Ashanti Limited, Gold Fields Limited, Anglo American Platinum Limited, and Impala Platinum Holdings Limited are all significant players in the unfolding gold rush. If you really think about it, tapping into this remarkably lucrative market is as much about understanding the forces behind its momentum as it is about watching the glittery swirl of precious metals.
Playing the Precious Metals Mandolin
Precious metals have a wide sweep of applications beyond just shiny trinkets. The market is divided into gold, silver, platinum, and other group metals. They serve multiple ends from industrial uses to jewelry creation and investments. Here’s what’s surprising – platinum claimed the most prominent market share in 2020 with 26.1%. This metal’s demand isn’t just for its sparkle, but its role in capturing debasing emissions in auto-catalysts. Long story short, the bling isn’t just for the glimmer; it’s rubbing its brilliance onto environmental sustainability too.
The Market Wide World Over
Just as you might’ve taken a shine to these precious metals, so has the rest of the world. This global market finds its bearings in the Americas, Europe, Asia Pacific, and the Middle East and Africa. Each region’s participation adds another gleam to the glittering potential of these commodities.
Stumbles and Leaps Amidst Pandemic
COVID-19 did throw a spanner into the works. Mining and production took a hit because of shutdowns. But, if you really think about it, market forces also found ways to shine through the pandemic gloom, with a significant leap in investments in gold. The World Gold Council reported a 40% surge in global investment in gold in 2020, compared to 2019. Quite the leap, ain’t it?
Driving Factors
The growing demand from end-user industries like automotive and electrical & electronics is feeding the precious metals market. Especially platinum finds utility in automobiles due to its properties to curb pollution. So, these glimmering substances are not just pretty, they are vital to keeping our world spinning. Surprising?
In a world constantly looking for the next gold rush, it seems we’ve come full circle back to literal gold (and its shiny cousins). Precious metals prove their worth again and again, with an expected market value climbing to dizzying heights. With the allure of these metals only set to grow, it seems we’re in for a shining future.
Photo by Jingming Pan on Unsplash (Free for commercial use)
