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Gold Yearbook: the average price of platinum is expected to fall for the whole of 2020 and palladium is expected to reach an all-time high.
Jul 28,2020 11:10CST
The content below was translated by Tencent automatically for reference.

SMM: July 28, 2020, the China Gold Council, the World Gold Council and the British Metal focus Company held an online press conference in Beijing to release "China Gold Yearbook 2020", "Global Gold Yearbook 2020" (Chinese version), "Global Silver Yearbook 2020" (Chinese version), "Global Platinum and Palladium Yearbook 2020" (Chinese version). The China Gold Yearbook is the most authoritative annual analysis report on the development of China's gold industry, gold market and gold consumption compiled by the China Gold Association. It has been published continuously for 18 years since 2002. It is a window for a comprehensive understanding of the current situation and development of China's gold industry. The global gold, silver, platinum and palladium yearbooks (Chinese version) provide comprehensive and accurate data on supply and demand and detailed forecasts of the market trend in 2020 from their respective perspectives. Its English version has been released in London recently. The four yearbooks have a large amount of information, rich data and strong historical literature. The publication of the 2020 Chinese version of the three yearbooks is of great significance to meet the information needs of China's relevant industries for international gold, silver, platinum and palladium industries, and to make up for the lack of foreign precious metals industry materials.

China Gold Yearbook 2020 makes an in-depth analysis of the current situation and future development trend of the annual gold industry chain with full and accurate data. it is the only publication that comprehensively reflects the development situation of China's gold industry and the development trend of the gold market. It is a necessary reading and reference book for employees in the gold industry and people who pay attention to the development of the gold industry. The China Gold Yearbook has now basically formed five major sectors: industry, enterprise, science and technology, consumption and market, covering the whole upstream and downstream industrial chains such as exploration, mining, smelting, refining, trading, processing, sales, application, investment, and trading.

The China Gold Association has established a national gold information collection network to track and investigate the operation of the gold industry regularly or irregularly, and hundreds of thousands of information data can be obtained from hundreds of gold enterprises every year. It is an authoritative organization for the collection, analysis and release of gold industry information authorized by the National Bureau of Statistics.

China Gold Yearbook 2020 comprehensively reflects the current situation, achievements and problems of China's gold industry in 2019. By the end of 2019, the country's identified gold resources reserves were 14131.06 tons, an increase of 3.61 percent over the same period last year. China's gold identified resources reserves have increased for 15 consecutive years and exceeded the 10,000-ton mark for five consecutive years.

In 2019, China's gold output was 380.226 tons (excluding imported raw materials), a decrease of 20.894 tons and 5.21% compared with the same period last year. However, China's gold output continues to rank first in the world, ranking first in the world for 13 consecutive years since 2007. Affected by the withdrawal of mining rights in nature reserves, the income policy of the transfer of mining rights, the management of cyanide slag as hazardous waste, the depletion of mine resources and other factors, the output of mineral gold in Henan, Fujian, Xinjiang and other key gold-producing provinces (regions) decreased.

In 2019, Shandong Gold Group ranked among the top 10 global gold mining companies with an output of 47.94 tons of mineral gold, with an overseas output of 8.47 tons, while Zijin Mining Group ranked 13th among global gold mining companies with an output of 40.83 tons, with an overseas output of 25.53 tons. The total output of mineral gold in overseas mines of Chinese gold enterprises is on the rise.

In 2019, the comprehensive production cost of gold in China was 212.00 yuan / g, an increase of 5.33 yuan / g or 2.58% compared with 206.67 yuan / g in 2018. Some gold enterprises with aging facilities and insufficient resources carry out closure and rectification, and the decrease in output increases the cost-sharing per unit of mineral gold. In addition, the decline in ore grade, the increase in the exploitation of refractory resources and the increase in investment in safety and environmental protection also lead to an increase in the comprehensive production cost of gold.

China's gold consumption in 2019 was 1002.78 tons, a decrease of 148.65 tons or 12.91 percent compared with the same period in 2018, ranking first in the world for seven consecutive years. Of this total, 676.23 tons were used for gold jewelry, down 60.06 tons from 2018, down 8.16 percent from the same period last year; 225.80 tons for gold bars and coins, down 83.40 tons from 2018, down 26.97 percent from the same period last year; and 100.75 tons for industrial and other gold, down 5.19 tons from 2018 and 4.90 percent from the same period last year.

In 2019, the total gold trading volume of the Shanghai Gold Exchange, the Shanghai Futures Exchange and commercial banks totaled 90600 tons (unilateral), ranking third in the world after the United States and the United Kingdom, accounting for 15.36 percent of the total trading volume of the global gold market, up 4.43 percent from last year.

The Chinese version of the Global Gold Yearbook 2020 is divided into eight main parts: executive summary, gold market outlook, mineral gold supply, recycled gold supply, gold jewelry, industrial manufacturing demand, official departments, and gold investment. the yearbook uses facts to summarize, summarize and refine the global gold industry chain in 2019, and looks forward to the production, consumption and investment of gold in 2020.

In 2019, total global gold supply rose 2 per cent to 4831 tons, global mineral gold production fell 1 per cent year on year to 3534 tons, annual production fell for the first time in a decade, and global renewable gold supply rose 12 per cent to 1297 tons, a seven-year high. Total global demand for gold fell 9 per cent, and demand for gold jewelry fell 6 per cent to 2137 tons, a nine-year low. Net purchases of gold in the official sector fell by 2 per cent in 2019, but absolute amounts remain high by historical standards.

In 2020, with the outbreak of the COVID-19 epidemic and the introduction of ultra-loose fiscal and monetary policies, safe-haven buying continued to soar, making gold more attractive to investors, and the average price of gold is expected to reach 1700 US dollars / ounce in 2020 (up 22% from the same period last year). The total global gold supply is expected to decline by 1 per cent in 2020, mineral gold supply will fall by 5 per cent, and the growth of recycled gold supply will narrow to 8 per cent. Total global gold demand is expected to fall by 20 per cent in 2020, net gold purchases by the official sector will fall by nearly half to 350 tons; demand for gold coins and bars is expected to rise by 9 per cent; and gold demand will accelerate to decline or expand to 25 per cent.

The global silver and platinum palladium yearbook makes a comprehensive and systematic statistical analysis of the output, price and demand of the silver and platinum palladium market in 2019, forecasts the future silver and platinum palladium market, and analyzes its causes in detail.

In 2019, silver prices surged 15 per cent; total global mineral silver production fell 1.3 per cent year-on-year to 836.5 million ounces (26019 tons), and renewable silver supply increased 1.3 per cent to 169.9 million ounces (5284 tons). In 2019, the global demand for silver industry was 510.9 million ounces (15891 tons), the demand for physical silver investment increased by 12 per cent, and the global demand for silver jewelry sales fell by 9 per cent.

The yearbook predicts that total silver demand will still fall 3 per cent to 963.4 million ounces (29967 tons) in 2020, while total silver supply may fall 4 per cent to 978.1 million ounces (30424 tons) in 2020, and industrial demand will fall by 7 per cent. Silver jewelry sales are expected to fall by another 9% in 2020.

The performance of platinum and palladium in 2019 was a mixture of ice and fire: the average price of platinum fell for the eighth year in a row as the physical platinum supply continued to be oversupplied. As physical palladium continues to be in short supply, palladium prices soared to record highs in 2019, hitting an all-time high of $2883.89 an ounce in February 2020. In 2020, the average price of platinum is expected to continue to decline for the whole year, and the continuous decline in the stock of palladium on the ground is expected to push the price of palladium off the bull, which is expected to gradually overcome the downward pressure on palladium prices brought about by the COVID-19 epidemic crisis. The average price of palladium is expected to soar by 48% in 2020 to $2275 per ounce, a record high. In addition, the yearbook also specifically analyzes the impact of changes in platinum and palladium production and demand on the market, which is a good reference for precious metals investment.

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