Gold demand in the electronics sector climbed to 68.3 tonnes in Q2, marking a 4% increase compared to last year. This surge was fueled by booming investments in AI infrastructure that balanced out a decline in consumer electronics shipments.
According to the World Gold Council, the electronics industry remains the largest consumer of gold in technology. The growth was primarily driven by components such as AI server mainboards, integrated circuit substrates, and printed circuit boards used in low-earth orbit satellites. Memory chips and semiconductors also saw higher gold usage as the AI memory demand reshapes chip manufacturer valuations.
Gold wire and gold-tin bonding materials continued to be essential in automotive lighting, where durability against heat and vibration is key for vehicle head and tail lamps. However, the consumer segment didn’t share the same momentum. Smartphone shipments are forecasted to drop 13.9% in 2026, the steepest decline on record, as memory prices surge and dampen demand for devices like smartphones and laptops.
Other industrial and decorative gold uses fell by 7% to 10.1 tonnes, marking the ninth consecutive year of decline. Dentistry also slipped 6% with ceramic alternatives gaining market share. Despite these shifts, technology’s gold consumption accounts for only about 80.4 tonnes out of a total demand of 1,269 tonnes. Central banks bolstered the market by buying 289 tonnes over the same period.
The World Gold Council cautioned that any slowdown in AI returns or a downturn in electronics could weaken this key support for gold as handset sales struggle.
This material is for informational purposes and does not constitute financial advice.
