29 January, 2026
| Tonnes | 2024 | 2025 | Year-on-year % change |
|
| Technology | 326.2 | 322.8 | -1 |
|
| Electronics | 270.8 | 270.4 | 0 |
|
| Other Industrial | 46.5 | 44.2 | -5 |
|
| Dentistry | 8.9 | 8.2 | -7 |
|
A steady final quarter capped a year of broadly unchanged gold demand in the technology sector. The AI boom continued to drive demand for gold in electronics (the dominant category of demand in this sector), with high-speed computing accelerating the use of bonding wire and contact and interconnect materials.
However, this boom has created some tension and divergence with other parts of the electronics sector as manufacturing capacity has been redirected to meet AI-related demand, effectively crowding out production of some components and pushing up prices. This contributed to volatility in the consumer electronics space, which faced a slow recovery and tariff uncertainties early in 2025, and availability issues and rapidly rising component prices in the latter half of the year. This scenario may also impact demand into 2026.
According to Counterpoint Research, a leading electronics analysis firm, smartphone shipments grew by 2% during 2025 but are forecast to fall in 2026 on the back of memory shortages and rising prices.1 Similarly, the PC and laptop market performed steadily during H1 2025, but rising costs impacted H2 and are expected to pressurise shipments during 2026.2
The rising gold price continues to pressure component manufacturers; fieldwork suggests increased R&D into thrifting and substitution of gold across all sectors.
Gold demand in the electronics sector was flat at 69t during Q4; full year demand also held steady at 270t. Growth momentum varied significantly across major producing countries. East Asia demonstrated relative strength, supported by a strong AI supply chain and localisation strategies; in contrast, fabrication in Western markets declined, stifling overall market performance.
The Light Emitting Diode (LED) sector recorded a small decline in Q4 gold volumes as traditional mass-market applications, including general lighting and standard displays, remained weak. As we have reported in previous quarters, newer technologies such as mini- and micro-LEDs (which generally require less gold – or in some cases none at all) continue to gain share in these sectors as manufacturers focus on cost reduction. However, support for gold demand came from emerging high-end and niche applications such as optical communications, advanced driver systems, 3D printing and horticultural lighting.
Gold usage in wireless applications grew in Q4. A resurgence in orders for Power Amplifiers (PA) and Wi-Fi chips – as manufacturers of laptops and smartphones started to replenish their depleted inventories – significantly boosted capacity utilisation rates across the supply chain. This was supplemented by manufacturers aggressively deploying compound semiconductor technologies across AI, aerospace, electric and hybrid vehicle systems and sensing technologies in wearables and smartphones.3 This shift, which signals the start of a new technology-driven growth phase for the wireless industry, should provide greater resilience against fluctuations in the traditional consumer electronics market moving forward.
Demand for gold in the memory/semiconductor sector registered a small increase in Q4. Rapid expansion of AI infrastructure and a wave of consumer electronics upgrades were key to this growth. Indeed, the strength of demand from AI applications has severely pressured DRAM and NAND capacity, driving a more than doubling of memory prices in 2025. According to IDC Global, “unprecedented memory chip shortage with knock-on effects for device manufacturers and end users could persist well into 2027. DRAM prices have surged significantly as demand from AI data centres continues to outstrip supply, creating a supply/demand imbalance.”4
Looking forward, this imbalance could significantly impact the consumer electronic market, fuelling price increases and potentially lengthening device lead times.
Gold used in Printed Circuit Boards (PCB) saw a small increase during Q4. AI servers remained the core area of growth for PCBs, driving shipment volumes and catalysing usage in infrastructure upgrades. Additionally, the Low Earth Orbit Satellite (LEOS) communication sector generated significant order volumes for High Density Interconnect (HDI) boards. Combined with seasonally higher demand from the steady smartphone and PC markets, HDI shipments outperformed previous years.
However, while the increased proportion of high-end products has bolstered gold consumption, the supply chain is grappling with the cost impact of surging gold prices. To maintain profitability, PCB manufacturers have reportedly accelerated thrifting measures and are increasingly exploring alternative materials. These cost-control measures have, to some extent, offset the gains from product specification upgrades.
At the aggregate level, two of the four major electronics fabrication hubs around the world recorded small increases in gold demand during Q4: Mainland China and Hong Kong SAR – 20.1t (1.8%) and South Korea – 6.6t (5.2%), while Japan – 18.8t (-1.3%) and the United States – 16.7t (-4.1%) both fell slightly.
Other industrial demand for gold in Q4 fell by 7% y/y. Demand for plating salts in China dropped sharply as the sluggish domestic economy and retail store closures undermined demand for gold plated products. Demand for jari in India also weakened, in response to the sharply higher gold price. This is a seventh consecutive quarter of y/y decline and a second full year of losses. Gold used in the dental sector also fell by 6% y/y in Q4 as alternative materials continued to dominate.
A compound semiconductor is a material made of two or more different elements, such as gallium arsenide, distinct from traditional semiconductors that are made of a single element, like silicon. These materials have unique properties that make them faster, more efficient and better at handling high power and light, making them essential for modern technologies like electric vehicles, 5G networks, and advanced sensors.
