‘Yellow’ is on the rise, despite the US post-election hangover — and other, cheaper metals are taking advantage of the cue.
The growing appreciation of gold — it breaks records every month — is changing the markets.
Despite not falling into such a post-election situation since the days of Ronald Reagan, according to , he continues to position himself as a leader.
But the constant rise in prices for this precious metal led, in the course of 2023, to its increasing replacement by more economical alternatives, such as talkin applications where this is possible.
This trend is especially reflected in jewelry, where high costs directly impact consumers and manufacturers.
But how replaceable is gold?
Luxurious ‘yellow’ plays a key role in many areas of everyday life. In addition to its value as a safe haven asset for investors, it stands out not only in jewelry but also in industrial applications. With unique properties – such as high malleability, ductility and excellent electrical conductivity – gold is widely used in technological, aerospace and medical sectors. It is found in electronic circuits, spacesuit displays, dentures, and medications to treat inflammation and rheumatoid arthritis.
Its scarce nature makes it particularly valuable. All the gold extracted throughout history, estimated at 213 thousand tons, would fit into a 22 meter high building. Fortunately, it is recyclable.
The sharp rise in prices this year, despite recent fluctuations, has promoted changes in the market.
“Most gold is used in jewelry or in bars/coins. Its industrial application is more limited (7%) and the quantity used is small. Even so, we have observed a constant replacement of gold by other metals when this is possible”, he explains to Giovanni Staunovo, strategist at UBS.
Long-term projections suggest that gold could reach values greater than 10,000 dollars per ounce. If this prediction comes true, the substitution trend could intensify, with luxury products turning to alternative materials.
