Industry Analysis & Industry Trends
Since there are currently no commercial precious metal mines in the United Kingdom, operators in the Precious Metals Production industry recycle gold, silver and platinum group metals from a range of materials. Platinum sales are heavily influenced by the automotive industry as the commodity is used to manufacture catalytic converters, which help to clean exhaust gases. Gold and silver are both used to make jewellery and have a variety of industrial uses, but they are also popular with investors, who see them as a safe haven for their money when returns elsewhere are uncertain. This investment demand means gold and silver prices fluctuate much more radically than would otherwise be expected.
Fluctuations in global financial markets mean industry revenue has been very volatile... purchase to read more
Industry Report - Industry Investment Chapter
The level of capital intensity in the Precious Metal Production industry is high as it relies more heavily on industrial equipment than it does on labour. For every £1.00 industry operators spend on capital, IBISWorld estimates that £1.69 is spent on labour, which highlights the importance of capital investment to the industry. The production of precious metal ingots that meet the global minimum standard of 99.9% purity requires that equipment such as furnaces be kept in good working condition and replaced as necessary. The cost of replacing refining machinery can be extremely high. The industry also has a substantial working capital requirement in the form of raw material inputs such as crude bullion and various types of scrap. .. purchase to read more