Gold demand in technology and industry In the second quarter of this year, gold demand for technology and industrial purposes saw a notable rebound. According to the World Gold Council, technology and industrial sectors consumed 81 tons of gold, marking an 11% increase compared to the previous year. This strong performance has significantly boosted the total demand for gold in these sectors for the first half of the year to 162 tons.
Rise in Gold Demand for Technology
In Q2, the electronics sector led the charge in gold demand. Consumption increased by 14%, reaching 68 tons. This surge results from the growing use of high-end chips in artificial intelligence and high-performance computing applications. Additionally, there was a slight uptick in consumer electronics demand.
Major electronics fabrication hubs worldwide reported year-on-year increases in gold demand for Q2. For instance:
- Japan saw a 27% rise, consuming 19 tons.
- South Korea experienced a 34% increase, reaching 7 tons.
- The US saw a 4% rise, totaling 17 tons.
- China recorded a 14% growth, with 20 tons used.
Gold demand in technology and industry for light-emitting diodes (LEDs) also showed modest growth. The increase was due to flat-panel screens for the Olympic Games and other uses like air and water purification, automotive applications, charging stations, and robotics.
Growth in Printed Circuit Boards (PCBs)
Gold demand for printed circuit boards (PCBs) was up in Q2, fueled by the rising shipments of high-end PCBs that contain higher concentrations of gold. There was also a robust demand for PCBs used in server and satellite applications.
Gold remains crucial in the production of memory chips and the wireless sector. The World Semiconductor Trade Statistics Group forecasts an 18% growth in the semiconductor market for 2024, indicating continued strong demand for gold.
Is Gold Really Useless?
Some critics argue that gold is useless, citing statements like those from Warren Buffett, who noted that gold gets dug up, melted down, and buried again with no practical utility. However, this perspective overlooks gold’s substantial utility in various sectors.
Conclusion
Gold’s role in technology and industry continues to grow, demonstrating its importance beyond mere aesthetics. For the latest updates on gold prices and trends, visit Daily Gold Signal and check out the Daily Gold Update.
