The global economy showed resilience in 2024, growing by 3.2% despite challenges like inflation and geopolitical instability. The IMF predicts a steady growth of 3.3% in 2025, with inflation expected to drop to 4.2%. While the US economy grew strongly at 2.8%, China’s growth of 4.7% was lower than anticipated due to weak consumer spending. Amid this uncertainty, precious metals like gold proved to be valuable as both secure financial assets and important industrial materials.
Gold Market Performance
Gold had an exceptional year in 2024, reaching a record average price of $2,386 per ounce and peaking at over $2,600. The price continued to climb in early 2025, even surpassing $3,500, driven by several key factors: increased purchases by central banks, ongoing geopolitical tensions, and high investor demand. Although mine production and recycling saw a slight increase in supply, demand was strong from central banks and Asian retail investors, as well as from industrial uses. However, consumer demand for gold jewelry dropped significantly because of the high prices.
Platinum’s Market Performance
After being relatively stable for most of 2024, platinum’s price showed strength and surged past $1,400 in 2025. This was driven by consistent demand from both the jewelry sector and green technologies. While the overall supply saw a small increase, jewelry production in India, Japan, and China recovered significantly, largely because platinum became a more affordable alternative to gold. Furthermore, platinum’s growing use in hydrogen energy and other clean technologies has enhanced its environmental, social, and governance (ESG) appeal.
Palladium’s Market Performance
Palladium prices continued to struggle, with the average price in 2024 dropping by 27% to $983 per ounce. This decline was primarily due to a decrease in demand from the automotive industry and a shift towards using platinum as a substitute. While supply saw a small increase, it’s expected to decrease in 2025 as demand challenges continue.
Silver’s Market Performance
Silver attracted significant investor interest, achieving its best performance since 2012, with prices hitting $32 per ounce by the end of 2024. While supply saw a small increase, largely from recycling, industrial demand surged, especially from sectors like solar panels and electronics for AI and electric vehicles (EVs). Demand for silver jewelry and silverware was inconsistent, with a strong recovery in India offsetting a weaker performance in Western markets.
ESG in the Precious Metals Industry
Environmental, Social, and Governance (ESG) standards are becoming more important across the precious metals industry. Companies dealing in gold, platinum, and silver are now focusing on practices like responsible sourcing, improved traceability, and sustainability. The industry is moving toward more ethical and sustainable operations, with new initiatives such as tracking metals using blockchain, committing to reducing carbon emissions, and aligning with global standards.