Industry Projections for Precious Metals in 2023: Thriving Amidst Crises and Tepid Markets
The precious metals industry in Germany and beyond is experiencing significant changes, driven by both global market trends and domestic economic pressures. In this dynamic landscape, industrial demand, recycling practices, and investment behavior are all evolving.
**Industrial Applications**
Silver and platinum are playing increasingly crucial roles in various industries, particularly in green and digital technologies. In 2024, global industrial silver demand reached a record 680.5 million ounces (Moz), with forecasts suggesting a further 3% increase in 2025, surpassing 700 Moz for the first time. More than 60% of silver is consumed by industry, with photovoltaic (solar panel) installations alone accounting for nearly 17% of total silver demand in 2024.
The global market for platinum-based catalysts was valued at $417 million in 2024 and is projected to reach $536 million by 2031, growing at a compound annual growth rate (CAGR) of 3.5%. This reflects broader industrial demand, especially in automotive emission control, chemicals, and energy sectors.
**Recycling Trends**
Innovations in extraction and recycling, such as automated systems and advanced hydrometallurgy, are improving the efficiency and sustainability of the precious metals supply chain. Recycling is increasingly important, especially in recovering silver and platinum from electronic waste and urban mining sources. These methods not only reduce environmental impact but also help meet rising global demand, particularly in Germany where resource efficiency is a strategic priority.
**Investment Demand**
Investment demand for precious metals, particularly gold and silver, remains strong amid economic uncertainty, inflationary pressures, and financial market volatility. Gold and silver are seen as reliable stores of value and hedges against currency and market risks. The expansion of digital investment platforms and exchange-traded funds (ETFs) has made precious metals more accessible to both institutional and retail investors.
**German Market Context**
German manufacturers face a "procurement paradox," with high material costs and stagnant production. Industrial production in early 2025 remained about 10% below pre-pandemic levels, while producer prices surged, eroding competitiveness. Companies are responding by cutting jobs and idling capacity, underscoring the need for cost savings and more resilient supply chains—including in precious metals.
A lack of visibility in supply chains, particularly regarding sustainability, is a challenge for German firms. As regulations tighten and consumer expectations shift, improved recycling and sustainable sourcing of precious metals will become increasingly important.
**Summary**
The German precious metals industry is set to see continued growth in industrial demand, especially for silver and platinum, driven by green and digital technologies. Recycling and urban mining are becoming more important, while investment demand for gold and silver remains strong amid ongoing economic and geopolitical challenges. The trend towards the use of metal-free materials continues in the dental sector, with modern full ceramic materials being a cheaper and more durable alternative to gold alloys.
| Trend | 2024 Status/Projections | Drivers/Outlook | |----------------------------|--------------------------------------------|-------------------------------| | Industrial Silver Demand | Record 680.5 Moz (2024), +3% in 2025 | Green tech, digitalization | | Silver in Photovoltaics | ~17% of total silver demand (2024) | Solar panel growth | | Platinum Catalyst Market | $417M (2024), $536M (2031, CAGR 3.5%) | Auto, chemicals, energy | | Recycling | Urban mining, advanced hydrometallurgy | Sustainability, cost savings | | Investment Demand | Elevated for gold/silver | Inflation, market volatility | | German Manufacturing | -10% production vs. pre-COVID, high prices | Inflation, supply chain risks |
- The general news includes reports on the significant growth in global industrial demand for precious metals, such as silver and platinum, driven by their increasing roles in green and digital technologies, with silver demand forecasted to surpass 700 Moz for the first time in 2025.
- In the sports section, there might be articles discussing the impact of investments in precious metals, like gold and silver, on the financial market landscape, especially amid ongoing economic and geopolitical challenges, as these metals are often seen as reliable stores of value and hedges against currency and market risks.
