Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Steep falls in gold bonding wire demand reduced: WGC

Author: IANS/Wednesday, December 6, 2017/Categories: Gold

Steep falls in gold bonding wire demand reduced: WGC

New Delhi, Dec 5 - Steep falls in demand for gold bonding wire in the electronics industry seen in recent years have begun to level off as observed in the third quarter (Q3) of 2017, a World Gold Council report said on December 5.

According to the report, from 2005 to 2011, the price of gold quadrupled which put microchip manufacturers under considerable pressure to limit the amount of gold used in their devices.

"The industry focussed on identifying materials suitable to replace gold entirely. Whilst this has had some effect on electroplated coatings, its impact has been most marked in the bonding wire market," said the report titled "Technology: a brighter outlook?"

It added that the gold prices, however, reached a point where manufacturers could not relieve the cost pressures by thrifting alone, and had to turn to substitution.

"Replacement and thrifting combined account for most of the 71-tonne fall in electronics demand from 2010-2016. But data to the end of Q3 2017 indicates we may see a slight recovery in demand by the end of the year," said the report.

"We believe the major fall in demand for gold in the electronics sector may be behind us. At the end of Q3 2017, we saw year-to-date demand growth for the first time since 2010, and there are some promising areas of recovery ahead," it added.

The WGC report said gold usage in electronics grew steadily from the early 1970s as electronic devices entered the mainstream, becoming ubiquitous in recent years as smartphones and tablets have taken an increasingly important role in peoples' lives.

"Demand for gold in the electronics sector peaked in 2010 at a record 327 tonnes. But the growth in electronics demand from 2000 coincided with a rapidly increasing gold price," the report noted.

"This had a considerable impact on the use of gold by the electronics sector; gold used in electronics fell to 256 tonnes in 2016," it said.

Print Rate this article:
No rating

Number of views (261)/Comments (0)

Kavita Giridhar Mallya

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free