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Gold February 08, 2019 02:30:12 PM

Gold Demand in Electronics Sector Witnessed Marginal Jump in 2018

Paul Ploumis
ScrapMonster Author
The gold used in technology dipped to 84.1t in Q4, registering the first year-on-year decline in quarterly demand in over two years.

Gold Demand in Electronics Sector Witnessed Marginal Jump in 2018

SEATTLE (Scrap Monster): The World Gold Council (WGC) 2018 Demand Trends Report suggests marginal growth for gold demand in the technology space in 2018. The gold used in technology totaled 334.6t in 2018, the highest level since 2014. The demand witnessed notable slow down in Q4 ’18. Also, WGC forecasts further weakness in demand, on fears of aggravating trade disputes between countries.

The gold used in technology dipped to 84.1t in Q4, registering the first year-on-year decline in quarterly demand in over two years. However, the yearly demand got a boost from the electronics industry, driven by increased demand for consumer electronics and ongoing electrification in the automotive sector. Incidentally, the gold used in electronics rose 1% during the year to total 268.3t.

The demand for gold from the LED sector witnessed considerable decline by almost 10% during Q4 ’18. The ongoing trade fight between the U.S. and China has put more than 30 lighting applications under additional tariffs. As a result, some of the production has shifted to countries outside China.

The memory sector gold demand registered year-on-year decline, mainly due to slowdown in smart phone sales. Also, dental demand declined sharply by 6% over the previous year to total 15.4t, registering fourteenth consecutive year of decline. On the other hand, the demand from the Printed Circuit Board (PCB) sector saw marginal jump by 1.4%, mainly due to strong demand from automotive sector. The demand from other industrial applications too grew by 1%, said WGC report.

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