Tech and Industrial Gold Demand on the Rise in Q2
Industrial and technological demand for gold showed a strong rebound in the second quarter of the year. According to data from the World Gold Council, technology and industrial applications consumed 81 tons of gold in Q2, marking an 11% year-on-year increase.
This robust performance in the second quarter lifted the total tech and industrial gold demand for the first half of the year to 162 tons.
Electronics Sector Leads Gold Demand in Tech
The electronics sector was the primary force behind this surge in gold demand within the tech industry. In Q2, gold consumption in this sector rose by 14% to 68 tons. This increase was largely driven by the growing need for high-end chips, particularly those used in advanced applications like artificial intelligence (AI) and high-performance computing. There was also a slight uptick in demand for consumer electronics during this period.
Globally, all major electronics manufacturing hubs recorded year-on-year increases in gold demand in Q2, according to the World Gold Council:
- Japan: 19 tons (+27%)
- South Korea: 7 tons (+34%)
- United States: 17 tons (+4%)
- China: 20 tons (+14%)
Growth in LEDs and PCBs
Gold used in the production of light-emitting diodes (LEDs) also saw modest growth in Q2. The production of flat panel screens for the Olympic Games was a significant contributor to this increase. Additionally, other areas such as air and water purification, food preservation, automotive applications, charging station infrastructure, and robotics contributed to the demand for LEDs.
The demand for gold in printed circuit boards (PCBs) also grew during Q2, driven by increased shipments of high-end PCBs containing higher concentrations of gold. There was also strong demand for PCBs used in servers and satellite applications.
Gold continues to play a vital role in the production of memory chips and in the wireless sector.
Outlook for Gold Demand
Looking ahead, the World Gold Council expects that gold demand in the electronics sector will likely remain robust in the third quarter. The World Semiconductor Trade Statistics Group anticipates a strong 18 months ahead, forecasting 16% growth across the semiconductor market in 2024.
Two of the world’s largest memory chip manufacturers, SK Hynix and Micron, have reported that their 2024 stock of high-end memory chips is already sold, with much of 2025’s production also reserved. Samsung, on the other hand, is forecasting a 23% increase in Q2 revenue, fueled by surging demand for AI chips.
Other Industrial Applications
Gold demand in other industrial applications remained steady at 11 tons in Q2, unchanged from the previous year. A decline in Indian offtake was observed due to the country’s elections, coupled with fewer weddings, which led to a drop in demand for gold thread used in saris. However, this decline was offset by the growing demand for gold-plated jewelry in China.
