Daily Gold Market Report

Silver’s Ascending Role in the Electrifying Automotive Landscape 
90 Million Ounces Of Silver Absorbed Annually In The Automotive Industry By 2025

(USAGOLD – 9/26/2023) Gold and Silver are under continued pressure this morning. Gold is down $6.19 to $1909.73. Silver is down 8 cents to $23.06. With the continued meltdown in bonds and the looming U.S. government shutdown, most markets – if not all – remain under pressure. A report conducted by Metals Focus delves into the increasing significance of silver in the automotive sector. Silver’s unique properties, including the highest thermal and electrical conductivity of any metal, have made it indispensable in a variety of automotive applications. The ongoing electrification of vehicles, transitioning from traditional ICEs to electric vehicles (EVs) and eventually to autonomous driving, is expected to further boost silver demand. In 2021, 61 million ounces of silver was used for auto manufacturing. By 2025, this figure could approach 90 million ounces.

Furthermore, the report highlights the changing dynamics of the automotive industry, especially in terms of powertrain electrification. Global vehicle production is projected to increase from 74 million units in 2020 to nearly 100 million by 2025. The market share of ICE powertrains is expected to decline from 90% in the previous year to about 70% in the next five years. The transition from combustion engine powertrains to electric powertrains has been gradual to start, but has picked up pace in recent years.  Transportation policies are paving the way for electrification, with a focus on Europe, China, Japan, and the U.S. The global push towards reducing carbon emissions and the increasing commitment of countries to promote battery electric vehicles (BEVs) will have a net positive effect on silver demand, which should bode well for the price of silver as well.
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