A Guide to the Loco London Precious Metals Market
19. Key Facts about Precious Metals
Gold
(Source: Thomson Reuters)
- Total world mine supply for 2016 was 3,222 tonnes
- All-in sustaining mining costs were $818 per ounce as against total cash costs of $630 per ounce
- China is the world’s largest producer of gold, mining 453.5 tonnes in 2016
- Total scrap supply for 2016 was 1,268 tonnes
- The largest demand component for gold in 2016 was for jewellery, which comprised 1,891.5 tonnes
- Industrial fabrication only accounted for a total of 353.8 tonnes, for which electronics was the largest component
- Total identifiable investment demand was 1,579 tonnes in 2016
- India imported 510.6 tonnes of gold in 2016
- China’s total gold demand (excluding central bank purchases) was 968 tonnes in 2016
Silver
(Source: Metal Focus)
- Total mine supply for 2016 was 889.5 million ounces (27,666 tonnes)
- Total recycled supply for 2016 was 161.5 million ounces (5,023 tonnes)
- The largest demand component for silver was industrial fabrication of 487.4 million ounces (15,160 tonnes), and the largest section within this was electrical and electronics at 292.7 million ounces (9,103 tonnes)
- Mexico was once again the largest producing country with a total 184.8 million ounces (5,747 tonnes) of silver produced in 2016
- The world’s largest mining company was Fresnillo, with 45.7 million ounces (1,421 tonnes) of silver produced in 2016
- Production by source metal included 68% by-product production from lead/zinc, copper and gold mines, with production from primary silver operations at 31%
- All-in sustaining costs (AISC) at primary silver producers averaged $8.97 per ounce in 2016 (including by-product credits). Total cash costs (TCC) averaged $4.79 per ounce
- In 2016, silver jewellery fabrication was dominated by India which accounted for 53.9 million ounces (1,677 tonnes), almost double compared to China which accounted for 28.7 million ounces (893 tonnes)
Platinum
(Source: Johnson Matthey)
- Total mine supply for 2016 was 6.1 million ounces (189 tonnes)
- South Africa produced 4.392 million ounces (136.6 tonnes or 72% of the total)
- The balance was from Russia (22.5 tonnes) and others (30.7 tonnes)
- Global autocatalyst demand for platinum reached 3.32 million ounces (103.2 tonnes) in 2016. This was over 40% of the total global demand for platinum
- While autocatalysts are the primary usage for platinum, jewellery is second at 2.45 million ounces (76 tonnes)
- China dwarfs the rest of the world in terms of platinum jewellery demand, with some 47 tonnes being required in 2016 – nearly 5 times its nearest rival (Japan)
Palladium
(Source: Johnson Matthey)
- Total mine supply for 2016 was 6.76 million ounces (210 tonnes)
- Russia was the largest producer at 2.77 million ounces (86 tonnes), with South Africa second at 2.57 million ounces (80 tonnes)
- Global autocatalyst demand for palladium was 7.94 million ounces (247 tonnes). This was over 84% of total global demand for palladium
- While autocatalysts are the primary usage for palladium, electrical is second at 953,000 ounces (29.6 tonnes)
- In 2016, world consumption of palladium in jewellery alloys was 189,000 ounces (5.9 tonnes)
Except where stated, the information outlined on this page comes from the following sources:
- GFMS Gold Survey 2017 Produced by Thomson Reuters
- Metal Focus Silver Focus 2017 Produced by Metal Focus
- PGM Market Report May 2017 Produced by Johnson Matthey
The word ‘tonne’ always denotes a metric tonne of 1,000 kilograms.
Please note that in the data above, brevity has been prioritised and so headline statistics have been used. The information provided is not intended to replace the full reports from Thomson Reuters, Metal Focus, Johnson Matthey and other sources of research into precious metals. For example, the fact that, for palladium, mine supply was only 210 tonnes and yet autocatalyst demand was 247 tonnes is not a misprint, but a reflection that recycling and stockpile reduction have not been listed above.
The most up to the date information should be sourced directly from the various companies engaged in producing research into precious metals.