Contact us
CALL US NOW 1-888-GOLD-160

Technology Sector Has an Increasing Appetite for Gold

  by    0   0

According to the World Gold Council, overall global demand for gold was soft in the first quarter of this year. But demand in the technology sector was particularly strong, marking its sixth consecutive quarterly gain.

Overall, demand for gold in technology and industry increased 4% to 82 tons year-on-year. 

Gold needed for the production of computers and electronics generates the most industrial demand. It grew 5% year-on-year to 65.3 tons in Q1 2018. Sustained demand for gold bonding wire, as well as for gold used in wireless and Printed Circuit Board (PCB) served as a primary driver.

The amount of gold used in bonding wire increased by about 5% as memory chip makers expanded capacity.

At least four chip makers opened new factories in China and all are expected to reach commercial operation by the second half of 2018. These additional outputs of DRAM and NAND memory chips will fulfil a strong appetite for cloud storage and computer graphic cards used in cryptocurrency mining infrastructure.”

The biggest increase in demand for gold came in the wireless sector. The WGC estimates it increased between 20 and 30% year-on-year in the first quarter. The expansion of 5G networks is helping drive this demand. Verizon plans to roll out 5G to five US cities this year. China, Japan, Taiwan and South Korea have also announced plans to expand their 5G networks.

The inclusion of vertical-cavity service-emitting lasers (VCSEL) for 3D sensors and gesture recognition in smartphones also pushed demand for gold higher. VCSEL is a type of semiconductor-based laser diode that emits a highly efficient optical beam vertically from its top surface.

As we reported last month, some of the most amazing tech developments utilizing the gold have been in the field of medicine. Gold nanoparticles are being used to treat cancer and to help diagnose other diseases.

Gold may even help restore eyesight. According to a report in Live Science, researchers are developing an artificial retina made of organic ink and gold.

The new device is an extremely thin sheet of organic crystal pigments, which are widely used in printing ink, cosmetics and tattoos. When these pigments are arranged in a particular layered geometry, the crystals can absorb light and convert it to electric signals, just like the light-sensitive cells — called photoreceptors — in the eye’s retina and make vision possible.”

We generally think of gold as an investment as well as money, but it is increasingly being used in technology and industry. Demand for gold in the technology sector has been growing since 2016 and that growth is continuing to accelerate due to new innovations. Increased demand in these sectors will likely put upward pressure on overall demand for gold in the future. 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.


Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
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

Thirty-Nine States Don’t Have Enough Money to Pay Their Bills

It’s not just the federal government running massive deficits and piling up enormous levels of debt. Thirty-nine US states don’t have enough money to pay all of their bills. That was the grim conclusion of Truth in Accounting’s annual Financial State of the States report. The report summarizes a comprehensive analysis surveying the fiscal health […]


No Inflation? Money Supply Continues to Grow at Record Rate

To hear Federal Reserve officials, politicians and mainstream financial media pundits tell it – there is no inflation. In fact, the consumer price index remains “stubbornly low” according to those who view rising prices as an economic good. But inflation defined correctly is rampant. In fact, it is at all-time record levels. Strictly speaking, inflation […]


The Fed Is Backstopping the Enormous Government Debt

The 2020 budget deficit surged passed $3 trillion in August even as the US government continues to borrow and spend at a torrid pace. Since March, the federal government has added $3.3 trillion to the national debt. That is on top of the $1.4 trillion in debt Uncle Sam piled on in the 12 months […]


The Fed Delivers What’s Expected

If you go to McDonald’s, you expect to get a hamburger. If you go to KFC, you expect to get chicken. And if you go to the Federal Reserve, you expect to get easy money. The Fed delivered exactly what you would expect at this month’s Federal Open Market Committee meeting that wrapped up Wednesday.


Lockdowns May Have Permanently Scarred the Labor Market

Every week, analysts and pundits pour over the latest weekly jobs report looking for signs of life. Every month, we dive into the monthly unemployment numbers hoping they signal economic recovery. But these unemployment numbers don’t tell the whole story. The government economic shutdowns in response to the coronavirus pandemic have deeply wounded the economy […]


Comments are closed.

Call Now