Gold Demand From Technology Sector Dipped in 2020

SEATTLE (Scrap Monster): The widespread challenges in connection with Covid-19 pandemic resulted in subdued demand for gold from technology sector throughout the previous year. However, the sector witnessed signs of recovery in the final quarter, said the latest Gold Demand Trends Report published by the World Gold Council (WGC).

The overall gold demand by the technology sector registered year-on-year decline by 7% to 301.9t in 2020. The demand had totalled 326t in 2019. The gold used in electronics was down by 5% over the previous year at 248.1t. The gold used by dental and other industrial sectors witnessed decline by 16% and 15% respectively.

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The demand for gold in technology sector was severely impacted in the year. The first half of the year took the worst hit. A quarter-on-quarter improvement was reported in Q3. The final quarter of the year reported solid year-on-year recovery.

Looking forward, WGC foresees the threat of migration to mini-LED technology, which uses less quantities of gold, in some applications. However, gold use is expected to find support from other areas such as 3D sensors for use in the smartphone and automotive sectors. The proposed doubling of memory chip output by China’s largest manufacturer and strength in shipment of 5G-enabled smartphones promises increased demand for gold, WGC noted.