Trends in Global Demand for Gold and Silver in 2024

The global demand for gold and silver showcases significant regional variations, driven by cultural preferences, economic conditions, and industrial advancements. While gold continues to be seen as a safe-haven asset, especially in uncertain times, silver is increasingly valued for its role in industrial applications, particularly within the green economy.
In Switzerland, gold ownership is deeply rooted in the nation’s financial culture. A recent study from the University of St. Gallen highlights that a majority of Swiss citizens view gold as a prudent investment, with 65.2% of respondents endorsing this perspective. By extrapolating survey results, researchers estimate that individuals in Switzerland hold about 200 tonnes of gold in coins and bars, worth nearly CHF 14.9 billion. Interestingly, many Swiss prefer to keep their gold accessible, only selling it during emergencies. This reflects a broader cultural tendency to treat gold as personal insurance against economic volatility.
In contrast, China’s gold consumption has seen a notable decline in 2024. During the first three quarters of the year, demand fell by 11.18% compared to the same period in 2023, amounting to 741.732 metric tons. High prices have particularly affected the jewelry segment, which accounts for more than half of the country’s gold consumption. Despite this decline, the rise of innovative retail models, such as live-streamed shopping, has spurred growth in smaller gold jewelry purchases. This shift suggests that while traditional gold buying may be subdued, changing consumer habits are opening new opportunities in the market.
India presents a more optimistic picture, with gold demand showing signs of recovery. Price corrections and reduced import duties have boosted the purchase of gold bars and coins. Cultural factors, such as festivals and weddings, continue to play a pivotal role in sustaining demand. However, occasional fluctuations in price and cultural traditions can temporarily impact purchasing patterns.
Silver, on the other hand, is experiencing a different dynamic, with its industrial applications driving demand. Global silver consumption is expected to rise by 1% in 2024, reaching 1.21 billion ounces. This growth is largely attributed to industrial sectors such as photovoltaics, electric vehicles, and infrastructure development, particularly in renewable energy. The green economy has been a critical driver, as silver is integral to the production of solar panels and other clean energy technologies. Additionally, advancements in artificial intelligence and technological infrastructure have further supported silver demand in the electronics industry.
However, the physical investment segment for silver has weakened, with a forecasted decline of 15% in 2024. The most significant drops are seen in the United States, where coin and bar sales are expected to decrease by 40%, reaching their lowest level since 2019. In Europe, the decline has been less severe, following a significant contraction in 2023. Meanwhile, India has emerged as a bright spot for silver investment, with increased purchases of bars and coins fueled by reduced import duties and strong price expectations.
In summary, gold and silver continue to play distinct roles in the global economy. Gold remains a symbol of financial security, with its demand shaped by cultural and economic factors. Silver, on the other hand, is becoming increasingly vital in industrial applications, particularly as the world shifts toward renewable energy and technological advancements. Together, these metals highlight the evolving dynamics of precious metal markets across different regions.