Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Demand for Gold in Technology Sector Expected to Rise

  by    0   0

We think of platinum and palladium as the “industrial metals,” but in 2016, there was more gold used in industrial applications than either of these two metals.

According to a report released by the World Gold Council, demand for gold in electronics has been growing since the fourth quarter of 2016. On top of that, other emerging technologies in the health and energy sectors are also driving up the industrial demand for gold. All of this could have a positive impact on overall gold demand in the future.

Historically, gold’s primary industrial use has been in electronics. Its physical properties make it an ideal material for electronic applications. It’s highly conductive, it doesn’t corrode or tarnish like other conductive metals, and gold is soft and pliable. The two primary uses for gold in electronics are as an electroplated coating on connectors and contacts, and bonding wire in semiconductor packages.

The use of gold in electronics peaked in 2010 at 327 tons and then began to fall off to just 256 tons in 2016. But analysts at the World Gold Council see a sustainable resurgence in industrial demand developing.

We believe the major fall in demand for gold in the electronics sector may be behind us. At the end of Q3 2017, we saw year-to-date demand growth for the first time since 2010, and there are some promising areas of recovery ahead.”

The overall amount of gold used in the technology sector grew for the fourth consecutive quarter in Q3 2017. Tech industries consumed 67.3 tons of gold in the quarter, a 3% increase year-on-year. Demand for memory chips served as a primary driver for increased industrial gold consumption. There are a number of reasons to believe the increasing demand trend will continue.

The steep drop in demand for gold bonding wire has begun to level off. More significantly, there is currently a major digital memory shortage. Samsung Electronics recently announced surging demand for memory drove record-breaking earnings for the company. Coupled with a new generation of smartphones now coming into the market, and the increasing role of hybrid and electric technology in automobiles, this bodes well for a continued increase in gold demand by the electronics sector.

There is also an increasing demand for gold in other technology sectors. Nanoparticle technology is rapidly evolving. Scientists are developing ways to use gold to kill cancer cells, improve the efficiency of solar cells and catalyze chemical reactions. The following video provides a fascinating overview of this developing field.

We generally think of gold as an investment as well as money, but its increasing industrial role will likely impact demand. The amount of gold used in technology was roughly equal to the amount purchased by central banks between 2010 and 2016. This fundamental driver of demand will only increase the overall value of the yellow metal.

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Some Key Reasons Gold Should Shine in 2018

gold coins and bullions laying on a newspaperThe last few weeks have been tough on gold. If you have a short-term mentality, you might even think the gold market has gone bearish. But as World Gold Council chief market strategist John Reade pointed out in a piece he wrote for the December issue of WGC Gold Investor, 2017 has been good for […]

READ MORE →

FOMC Meeting: Yellen Follows Her Script

The December Federal Open Market Committee meeting went pretty much according to scrip. Analysts widely expected the Fed to raise rates by .25. It did. Analysts also expected the Fed to signal three more hikes in 2018. It did that too. Gold went up, as we said it probably would, hitting a one-week high in […]

READ MORE →

The US Government Is Spending Money Like a Drunken Sailor

The US federal government is spending money like a drunken sailor. And that’s probably unfair to drunken sailors. In November alone, the US government reported a $139 billion deficit. Related

READ MORE →

Crypto vs. Gold: Gold Has Value Unto Itself

gold barsBitcoin mania is in full force. When I get to my desk in the morning, the first thing I do is check the latest gold news. But lately, when I google the word “gold,” I mostly get Bitcoin news. In his most recent podcast, Peter Schiff even suggested CNBC should rename its network the “Crypto News […]

READ MORE →

The Fed’s Magic Trick That’s Picking Your Pocket

Every year, the Federal Reserve robs you of a little bit of your wealth. And it does so by design. Writing for the Sovereign Man, Jeff Thomas called it a “magic trick.” But it’s not magic in a mystical way. It’s magic in the show business sense of the word.  It’s an illusion, facilitated by distraction that fools the audience. […]

READ MORE →

Comments are closed.

Free Newsletter & Notification of Special Deals
RSS Feed
LINKEDIN
YouTube Channel
YouTube Channel
Google+
Google+
https://schiffgold.com/key-gold-news/demand-gold-technology-sector-expected-rise
Call Now