Mentioned Instruments
- Gold
- ISIN: XC0009655157
- Current price: $4,777.32/oz. (JFD Brokers)
Gold prices stabilize as silver and platinum demand surges in key industries
Germany's precious metals sector is looking ahead to the current year with optimism, buoyed by persistent global uncertainty, a resurgence in gold demand, and strong industrial need for silver. "Uncertainty and global tensions are not subsiding," noted Thomas Weiß of the Precious Metals Association.
After a sharp—though long-overdue—correction triggered by recent conflicts, gold prices have since stabilized. Central banks in emerging markets, in particular, have reemerged as key buyers, helping to shore up demand.
Silver remains a critical industrial commodity due to its unmatched conductivity. Driven by digitalization and artificial intelligence, it is essential in data centers and microchips, while the green energy transition relies on it for wind turbines and solar panels. However, rising prices have led some industries to reduce silver consumption or substitute alternatives like copper, according to Franz-Josef Kron.
Platinum and related metals are seeing stronger-than-expected demand, primarily for catalytic converters. With the shift to pure electric vehicles progressing more slowly than once forecast, demand remains robust. At the same time, supply from Russia and South Africa has declined for various reasons.
To reduce dependence on global developments and supply chain disruptions, the industry association is calling for expanded recycling efforts. Last year, many individuals sold old jewelry, coins, and bullion amid rising prices, but significant untapped potential likely remains in private hands.
Electronic devices present a particular challenge: in Europe, only about one-third are recycled, and much of the material is exported outside the EU. Still, even with increased recycling, it cannot fully meet the sector's growing demand.
