In addition to factors such as central bank purchasing and jewelry manufacturing, gold’s use in technology contributes to the overall demand for the precious metal.
Gold is utilized in numerous tech-oriented industrial applications. The electronics sector, though, is responsible for most of the technology-related demand for the metal — 80%, according to the World Gold Council.
Gold’s physical and chemical properties, which make it malleable, able to conduct electricity and be utilized in other ways, according to Britannica, have enabled the precious metal to be used in a variety of electronic devices. Gold can be found in printed circuit boards in automobiles, for instance; semiconductor chips use the metal as a coating or thin bonding wires, the World Gold Council says.
Everett Millman, a precious metals specialist at Gainesville Coins, says we may see even more applications for the precious metal within the tech sector in the future.
“The fact that both silver and gold have uses in a lot of our newest technologies is one area to keep an eye on that’s always evolving,” Millman says. “Even though gold is only used in very tiny amounts in a lot of electronics, it’s an essential component.”
Gainesville Coins on the Escalating Interest in Gold
The demand for gold used in technology has risen throughout 2024. In the first quarter of the year, AI-related growth in the electronics sector helped fuel a 10% year-over-year increase in tech-related gold demand, according to the World Gold Council.
The need for gold for tech sector applications also increased in the second quarter of the year, rising 11% from 2023. In the third quarter of 2024, the World Gold Council said electronics use helped buoy the technology-related demand for gold up 7%, compared to the level of demand in the third quarter of 2023.
Recent industry analyst forecasts suggest the tech sector may be primed for growth in 2025. Global IT spending is predicted to increase by 9.3%, according to information technology research firm Gartner. The International Data Corporation, which provides IT and consumer technology market intelligence, anticipates worldwide shipments of personal computers will rise 4.3% , and the amount of 5G-powered smartphones that are shipped will increase by more than 13%.
Gold will likely be needed to manufacture some of those items; limited resources of the precious metal, however, are available in the world — and only so much can be mined a year. In 2021, 3,568.9 tons of gold were excavated, according to World Gold Council data. In 2022, the annual total was 3,624.8 tons; and in 2023, 3,644.4 tons were mined.
“Gold is a rare element; we can’t make [it] in a lab,” Millman says . “Gold mining
production is relatively steady.”
As solar panel, electric vehicle and other currently in-use technologies continue to mature, the associated utilizations for gold, in tandem with its use in new and emerging technology, will likely increase the demand for the precious metal, according to Millman — potentially enhancing its price.
“We know that supply of gold is limited,” the Gainesville Coins specialist says. “Gold is extremely useful; it cannot be replaced in all sorts of industrial applications. Whatever the tech sector has down the road over the next five to 10 years, almost without a doubt, gold and silver are going to be used in those technologies.”
