Gold Remains the Shining Star in the Precious Metals Market
The global precious metals market is experiencing remarkable growth, poised to surpass $400 billion by 2028, according to a report by Fortune Business Insights™.
The report highlights the significant role played by gold in driving this market expansion. As the market continues to thrive, it becomes crucial to consider the repercussions for the Artisanal and Small-Scale Gold Mining (ASGM) sector, particularly in Africa and other frontier mining jurisdictions.
Unleashing the Potential of Gold:
Gold stands as a beacon of stability and security amidst the volatile investment landscape. Its low-risk nature attracts investors seeking a reliable store of value, distinguishing it from equities, bonds, and real estate.
Consequently, the investment segment is predicted to experience rapid growth between 2021 and 2028. Additionally, jewelry demand contributes significantly to the upward trajectory of gold, ensuring a promising outlook for the precious metals market.
The Silver Lining:
While gold steals the spotlight, silver shines in its own right, poised to benefit greatly from the expanding electrical and electronics industry.
With increasing demand for silver in various technological applications, it secures a prominent position in the evolving market landscape.
Meanwhile, platinum group metals are set to experience a surge in demand driven by auto-catalyst applications, further diversifying the precious metals sector.
ASGM Sector and the Call for Improvement:
In light of the positive projections for gold mining and investments, it is essential to address the plight of artisanal gold miners, especially in Africa and frontier mining jurisdictions.
Artisanal and small-scale mining (ASGM) is a livelihood for approximately 8 million people across Africa, although it operates within a legal gray area and often falls victim to organized crime and conflicts.
Africa’s significant mineral reserves, including gold, diamond, cobalt, bauxite, iron ore, coal, and copper, establish it as a major player in the global mining industry.
Countries such as the Democratic Republic of Congo (DRC), South Africa, Namibia, Ghana, and Zimbabwe have long been recognized for their mining prowess.
However, emerging mining jurisdictions like Nigeria, Mali, Burkina Faso, Senegal, and Niger are now becoming crucial gold producers.
The ASM sector, comprising approximately 100 million miners worldwide, plays a vital role in the global gold supply chain. However, these miners often operate on the fringes of the formal mining sector, lacking basic social and environmental safeguards. Despite these challenges, ASM accounts for around 20% of the world’s gold production and up to 85% of certain gemstones.
MineDepot®™: Revolutionizing ASGM Operations
To address these issues and promote sustainable practices, MineDepot®™ has embarked on a mission to establish organized and formalized artisanal small-scale mining operations across Sub-Saharan Africa.
The interventions offered by MineDepot®™ bring numerous benefits to small-scale miners, including increased efficiency, enhanced site longevity, reduced environmental degradation, improved profitability, and the establishment of a proper chain of custody for mined materials like gold and other precious minerals.
As the precious metals market continues its upward trajectory, fueled by the prominent role of gold, it is vital to consider the implications for the ASGM sector. Recognizing the challenges faced by artisanal gold miners and frontier mining jurisdictions, initiatives like MineDepot®™ aim to revolutionize the ASGM sector, ensuring sustainable and responsible mining practices.
By empowering small-scale miners and providing them with the necessary tools and resources, we can ensure that gold remains golden for both the precious metals market and the communities it impacts.
