Gold Demand Trends Q2 2024

AI and high-performance computing applications drove Q2 ongoing gold demand recovery

• Gold used in industrial applications rose 11% y/y to 81t during the quarter, with a similar y/y increase in H1 demand to 162t
• This growth was driven by the electronics sector, which saw a 14% y/y increase in Q2 to 68t
• Gold used in other industrial applications was unchanged y/y at 11t, while dental demand continued its long-term decline, down 5% y/y to 2t.

The continued recovery of demand in the technology sector in Q2 was primarily due to high-end chips used in growing application areas such as AI and high-performance computing. Q2 also saw further recovery in consumer electronics demand, albeit at a moderate pace – although this may accelerate in Q3 as major smartphone manufacturers launch new models.

Electronics

Gold used in the electronics industry saw the third successive quarter of double-digit y/y growth. Most major chip manufacturers have reported strong demand and results. SK Hynix and Micron, two of the world’s largest memory chip manufacturers, have reported that their 2024 stock of high-end memory chips is already sold, with much of 2025’s production also reserved.¹  Samsung is forecasting its Q2 revenue to rise by 23%, thanks to ‘skyrocketing’ AI chip demand.²  More generally, the World Semiconductor Trade Statistics Group anticipates a robust 18 months; it is forecasting 16% growth across the semiconductor market in 2024.³ 

Gold used in Light Emitting Diodes (LEDs) experienced modest y/y growth during Q2. Demand for displays and flat panels has been strong thanks to major sporting events (in particular EURO 2024 and the Paris Olympics). In response, manufacturers moved production forward into H1 and this saw capacity utilisation rates increase. It is uncertain whether this level of growth will be maintained as display demand returns to normal over the remainder of the year. Other LED applications continue to be developed; examples include air and water purification and food preservation. As household devices increasingly adopt these types of features, orders are likely to grow. High-end infrared LEDs also continue to gain traction with increased use across a range of applications, including automotive, charging station infrastructure, advanced driver assistance systems and robotics.

Printed Circuit Board (PCB) demand also rose during the quarter. This was driven by growing shipments of high-end PCBs, which contain higher concentrations of gold, and strong demand for server and satellite applications. As reported in Q1, structural change continues in the sector with manufacturing capacity increasing in many South East Asian regions; Taiwan province of China, for example, has entered the market and is expanding into new applications.

Memory chip demand remained strong during Q2. This was driven by rapid growth in demand for AI and high-performance computing infrastructure, critically important applications in the sector. Recent quarters have seen significant growth in demand for High Bandwidth Memory (HBM)⁴ chips to serve the high-performance computing sector, and all major manufacturers are ramping up production to meet these needs. The recovering consumer electronics sector also offered support, with heightened demand for PCs, smartphones and servers. This is expected to continue into H2, suggesting a strong year for memory chip manufacture overall.

The wireless sector continued its recovery with another strong quarter. Power amplifier demand was strong across the smartphone and WiFi infrastructure sectors in preparation for the peak Q3 season. Manufacturer utilisation rates increased in parallel. This was further bolstered by ongoing growth in demand from both the automotive sector and Low Earth Orbit Satellites (LEOs), which have seen a huge increase in launches; Starlink, for example, launched its 6,000^th satellite into space earlier this year.⁵  The outlook for wireless demand is strong thanks to ongoing integration of communication systems around the world, and the need for infrastructure to support that effort.

At an aggregate level, all major electronics fabrication hubs around the world recorded a y/y increase in gold demand during the quarter: Japan19t (+27%); South Korea 7t (+34%); US 17t (+4%), and China⁶ 20t (+14%).