Gold expands its horizons – but is it enough to drive prices?

Gold is increasingly being used in industry, be it for nanotechnology, cancer therapy or fighting malaria. But is this demand enough to boost prices?

Gold bars
Gold: a "risk off" asset
(Image credit: © JOEL SAGET/AFP via Getty Images)

Never mind central banks, investment banks or private investors. The jewellery industry is, by some margin, the single largest buyer of gold, comprising almost 50% of annual demand for the yellow metal. Another 23% stems from investment, and 21%, last year at least, came from central banks. Just 6% of the demand for gold is industrial (excluding jewellery, of course). 

Demand from technology is at the margin, but might we see growth there? Let’s investigate. While silver and copper are better conductors of electricity, gold is more resistant to corrosion and oxidation. Therefore, it finds considerable use in electronics as a coating, especially where long-term stability is important. It is used to cover connectors, switches and relay contacts; in printed circuit boards, microprocessors and memory chips. This resistance means it is utilised in both aerospace and outer space, where it coats satellite components and spacecraft. 

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Dominic Frisby

Dominic Frisby (“mercurially witty” – the Spectator) is as far as we know the world’s only financial writer and comedian. He is the author of the popular newsletter the Flying Frisby and is MoneyWeek’s main commentator on gold, commodities, currencies and cryptocurrencies. He has also taken several of his shows to the Edinburgh Festival Fringe.

His books are Daylight Robbery - How Tax Changed our Past and Will Shape our Future; Bitcoin: the Future of Money? and Life After the State - Why We Don't Need Government

Dominic was educated at St Paul's School, Manchester University and the Webber-Douglas Academy Of Dramatic Art. You can follow him on X @dominicfrisby