Precious Metals Production in the UK Industry Market Research Report now updated by IBISWorld

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The Precious Metals Production industry has been highly volatile over the past few years, reflecting dramatic shifts in US dollar prices for precious metals and substantial variations in the value of the British pound against the US dollar. The industry is expected to generate revenue of £1.97 billion in 2012-13, compared with £994.1 million in 2007-08. This equates to annual growth of 14.7%. Industry revenue is expected to grow by 3.6% in 2012-13, reflecting higher gold prices in US dollars. Although other precious metal prices (also in US dollars) are expected to ease and the British pound is expected to strengthen against the US dollar, these unfavourable factors weighing on revenue will be more than offset by higher gold prices. The industry is expected to generate profit of £251.2 million in 2012-13. Industry growth is expected to slow over the next five years through to 2017-18. This growth reflects the interplay of flat output, continued increases in US dollar prices for precious metals and a relatively stable exchange rate. Profit is expected to grow at a similar pace. For these reasons, industry research firm IBISWorld has updated its report on the Precious Metals Production industry.

IBISWorld Market Research

IBISWorld Market Research

This mature industry receives a boost from rising platinum demand

The Precious Metals Production industry has been highly volatile over the past few years, reflecting dramatic shifts in US dollar prices for precious metals and substantial variations in the value of the British pound against the US dollar. The industry is expected to generate revenue of £1.97 billion in 2012-13, compared with £994.1 million in 2007-08. This equates to annual growth of 14.7%. Industry revenue is expected to grow by 3.6% in 2012-13, reflecting higher gold prices in US dollars. According to IBISWorld industry analyst Marina Williams-Wynn, “although other precious metal prices are expected to ease and the British pound is expected to strengthen against the US dollar, these unfavourable factors weighing on revenue will be more than offset by higher gold prices”. The industry is expected to generate profit of £251.2 million in 2012-13.

The main products manufactured by the industry are refined silver, platinum and gold. Firms may own the precious metal they refine or undertake refining on a fee-for-service basis. As a result, industry revenue consists of a mix of precious metal sales and refining fees. Industry growth is expected to slow over the next five years through to 2017-18. Williams-Wynn adds, “this growth reflects the interplay of flat output, continued increases in US dollar prices for precious metals and a relatively stable exchange rate. Profit is expected to grow at a similar pace”.

The Precious Metals Production industry's market share concentration level sits at the border between the moderate and high ranges. The four largest firms generate just over 70% of industry revenue, with a large number of smaller firms accounting for the remainder. The industry's three largest firms are full members of the London Bullion Market Association, while other firms are associate members. Membership signals that a firm is an active participant in the London gold and silver market. Major companies include Johnson Matthey, Baird & Co and Xstrata.

For more information on the Precious Metals Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Firms in this industry refine precious metals like gold, silver and platinum. They may also undertake plating with precious metals.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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