Business News | AI Revolution Drives Surge in Gold Demand for Smartphones, Autonomous Vehicles, and Data Centres: WGC
Get latest articles and stories on Business at LatestLY. Gold demand in the electronics sector peaked in 2010 at 328 tons but gradually declined to 249 tons by 2023. Recent quarters, however, have shown a modest recovery, driven in part by the expansion of AI-enabled devices.
New Delhi [India], November 23 (ANI): As AI systems become increasingly integral to devices such as smartphones, autonomous vehicles, and data centres, the use of gold has surged due to its unparalleled properties, according to the World Gold Council report.
Gold demand in the electronics sector peaked in 2010 at 328 tons but gradually declined to 249 tons by 2023. Recent quarters, however, have shown a modest recovery, driven in part by the expansion of AI-enabled devices.
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As manufacturers strive to meet the technological demands of AI, gold's unique properties ensure its continued relevance in high-performance electronic applications.
Gold's exceptional electrical conductivity and resistance to corrosion make it indispensable in advanced hardware components, ensuring high-speed data processing, minimal energy loss, and long-lasting performance.
The healthcare and financial sectors, among others, are heavily investing in AI to boost innovation and efficiency, further amplifying gold's demand.
As these industries expand their reliance on AI, gold's role in delivering reliable and efficient electronic components is becoming more prominent. From processors to sensors, gold remains a critical material for enabling AI-driven technology.
As per the WGC report, the rising cost of gold, which recently surpassed Rs 72,056 per 10 grams (USD 2,700 per ounce), poses significant challenges for manufacturers.
During previous price surges, like those between 2001 and 2011, industries responded by substituting gold with alternatives such as silver or copper and adopting thrifting techniques to reduce usage.
Yet, most of the "easy" reductions have already been implemented, leaving little room for further cost-saving measures without compromising performance.
Despite technological shifts in areas like LED production--where gold-free mini-LEDs are gaining ground--the growing complexity of AI systems is likely to sustain demand for gold.
Beyond AI, gold's versatility underpins its significance in other industries. In healthcare, it is used in therapeutic devices and as a key component in diagnostics and experimental drug delivery systems. I
In aerospace, gold protects sensitive satellite and spacecraft components from extreme temperatures and radiation. Additionally, in clean energy technologies, gold serves as a chemical catalyst in processes like hydrogen production and carbon dioxide transformation. (ANI)
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