By the World’s Best Investment Manager, Financial Market’s Journalist, and SEO Mastermind
Gold: A Valuable Asset Beyond Just Money
In the world of finance, gold is often seen as a store of value and a safe-haven asset. But did you know that there is a growing demand for gold in industrial and technological applications?
In the third quarter alone, industrial and tech demand for gold increased by 7 percent year-on-year, totaling 83 tons. This trend continued in 2024, with approximately 245 tons of gold already consumed in various industries.
The electronics sector is the largest contributor to industrial gold demand, with 69 tons of gold used in Q3, marking a 9 percent annual increase. Major electronics fabrication hubs in Japan, South Korea, and Mainland China also reported a significant rise in gold demand.
Despite a 4 percent decrease in U.S. electronic manufacturing, the overall demand for gold in the tech industry remains strong. The adoption of 5G technology and AI-enabled devices has further boosted the demand for gold in the wireless sector.
Additionally, the production of printed circuit boards (PCBs) and automotive electronics has seen a steady increase in gold usage. The rise of low-earth orbit satellites for communication services is also driving the demand for gold in PCB and wireless components.
Moreover, gold plays a crucial role in the production of light-emitting diodes (LEDs) and is used in various other industrial applications, totaling about 12 tons in Q3.
Despite Warren Buffett’s skeptical view of gold’s utility, the metal’s physical and chemical properties make it indispensable in many industries. From jewelry production to medical diagnostics, gold’s unique characteristics have made it a valuable asset beyond just being a form of money.
So, while gold may be synonymous with wealth and luxury, its practical applications in technology and industry highlight its true value in the modern world.