Editor’s Note
This analysis highlights the dual drivers—investment hedging and industrial innovation—behind Japan’s sustained demand for precious metals. As global market dynamics evolve, these insights are crucial for shaping procurement and development strategies in sectors from precision engineering to renewable energy.
In Japan, demand for precious metals remains robust as a hedge against economic fluctuations, with steady interest continuing from both investment and industrial use. Demand is also expanding for their use as materials in precision equipment and renewable energy-related technologies. Global market trends provide important insights for Japanese companies’ procurement strategies and new application development.
The increasing demand for precious metals in industrial applications is driving market growth due to their unique properties. Metals such as gold, silver, and platinum are highly valued for their excellent conductivity, corrosion resistance, and catalytic capabilities, making them indispensable in the electrical & electronics, automotive, and medical sectors. For example, gold is used in electronics for its conductivity and in the medical field for its biocompatibility. Silver is applied in solar panels and antibacterial coatings. Platinum is essential for automotive catalytic converters, contributing to emission reduction. The expanding adoption of green technologies like electric vehicles and renewable energy systems is further boosting demand for these metals. As industries increasingly prioritize sustainability and innovation, demand for products for advanced technologies continues to surge, driving market growth.
The global precious metals market size was valued at USD 341.95 billion in 2025 and is projected to grow at a CAGR of 5.60% during the forecast period, reaching USD 558.7 billion by 2034 from USD 361.22 billion in 2026. The Asia Pacific region dominated the precious metals market with a 52.70% share in 2025. Furthermore, the U.S. precious metals market is expected to see significant growth, projected to reach an estimated USD 117.78 billion by 2032, driven by increased demand for gold and silver as safe-haven assets amid economic uncertainty.
Rising disposable income and changing lifestyles are key drivers for the market. In Southeast Asian countries, gold and silver are extremely important in weddings, and demand for these metals for jewelry and investment purposes is predicted to expand globally. Therefore, population growth and rising consumer purchasing power in the region will contribute to market growth.
The pandemic that began in January 2020 severely impacted the market. Manufacturing facilities and mining activities were temporarily halted to prevent the virus’s spread. With declining consumer demand, production of electronic products also contracted. Major players in the electrical & electronics industry faced challenges in procuring silver needed for manufacturing printed circuit boards and composite substrates. For instance, according to The Silver Institute, industrial demand for silver fell by 5% in 2020. However, increased investment in precious metals and gold exchange-traded funds (ETFs) mitigated the pandemic’s impact on the market. According to a World Gold Council (WGC) survey, global gold investment demand increased by 40% in 2020 compared to 2019. Consequently, this market is expected to grow during the forecast period.
Sustained growth in global industrial sectors offers lucrative opportunities. Growth in end-use industries such as automotive and electrical & electronics is increasing demand for these metals. The automotive industry is a major consumer of platinum and palladium, primarily for use in catalytic converters. Furthermore, growing awareness of environmental pollution and changing regulations concerning carbon emissions from vehicles are expected to significantly increase demand for platinum group metals in catalytic converter applications. Additionally, rising demand for consumer electronics products is expected to lead to a surge in silver consumption as the electrical & electronics industry expands rapidly. Increasing demand for silver from solar panel manufacturers supports demand for these metals due to silver’s ability to conduct electricity with the highest efficiency. According to The Silver Institute, photovoltaics accounted for 10.2% of total silver demand in 2020.
By type, the precious metals market is segmented into silver, gold, and platinum group metals. In 2023, gold held the majority share of the precious metals market. Growth in this segment is linked to rising consumer disposable income and increased investment knowledge. Gold is widely used in jewelry and investment due to its visual appeal and aesthetics. Developing countries in the Asia Pacific region like India and China have become major consumers of gold due to rising individual spending capacity.
The silver segment is expected to exhibit significant growth during the forecast period. This growth is characterized by increasing demand for electrical & electronics applications. Furthermore, silver’s lower cost compared to other precious metals is an advantage for consumers for investment and jewelry.
Platinum group metals are expected to see increased demand for automotive catalytic applications. Their high efficiency in capturing carbon and other harmful emissions is leading to increased use in industrial sectors for pollution control and meeting environmental standards set by governments.
By application, the precious metals market is categorized into industrial, jewelry, investment, and others. The industrial segment is expected to maintain the largest application share during the forecast period. Growth in this segment is driven by increasing demand for silver from solar power manufacturers. Depletion of fossil fuels is accelerating demand for silver for solar panels, promoting segment growth.
The jewelry segment is estimated to grow at a significant CAGR during the forecast period. The primary factor for this segment’s growth is expanding jewelry demand due to rising consumer disposable income. Gold and silver are the most preferred metals for jewelry manufacturing due to their luster and ductility. In Southeast Asia, consumer demand is increasing due to the importance of gold in weddings, driving segment growth.
The investment application is expected to be the fastest-growing segment during the forecast period. Increased investment in commodities like gold, due to lower risk factors compared to other investments, is promoting segment growth. Furthermore, the decline in gold prices during the COVID-19 pandemic provided investors with new opportunities for asset growth, resulting in segment growth.
The Asia Pacific precious metals market size reached USD 160.37 billion in 2023. The region held a dominant share in the market in 2023 and is expected to maintain its leading position throughout the forecast period. This dominance is attributed to the presence of the world’s largest electrical & electronics industry in the region. China and India have the most significant influence on the market as major gold-consuming countries. These countries are rapidly expanding their industrial sectors through partnerships with foreign investors and international companies, which is expected to boost demand.
North America is expected to be the second fastest-growing region in the market. The presence of major precious metal mines around the region, coupled with strong manufacturing capabilities in the U.S., is likely to promote market growth.
In Europe, demand for precious metals in industrial applications is expected to increase significantly. Major automobile-producing countries in the region are contributing significantly to the rising demand. Furthermore, increasing jewelry consumption alongside the expansion of the fashion industry in the region will support growth.
Growth in the Middle East & Africa precious metals market is characterized by high demand from Gulf countries. High demand from jewelry and industrial applications will drive the market in the region. In Latin America, the market is expected to grow significantly due to high demand for industrial applications.
Major players are adopting strategies such as joint ventures for the exploration and mining of precious metal minerals. Key companies are expected to focus on large untapped reserves in African regions. New precious metal mining projects licensed to private companies under government regulation are expected to support demand expansion. Newmont Corporation is focusing on mine acquisitions and strengthening partnerships to expand its business to meet future gold demand.
List of Key Company Profiles:
• Newmont Corporation (U.S.)
• Barrick Gold Corporation (Canada)
• AngloGold Ashanti Limited (South Africa)
• Kinross Gold Corporation (Canada)
• Newcrest Mining Limited (Australia)
• Gold Fields Limited (South Africa)
• Freeport-McMoRan (U.S.)
• Wheaton Precious Metals (Canada)
• Anglo American Platinum Limited