gold market analysis

1. Precious Metals
making our world a better place

2. Table of Contents
The European precious metals industry 4
One world, our world. Let’s sustain it 8
Exceptional Properties 12
Here, There, Everywhere 14
It’s about Saving Lives 16
It’s about the Future 18
Contact 20
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3. Melting of precious metal containing scrap and other complex streams
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4. The European Precious Metals Industry
Europe boasts the most extensive refining and manufacturing capacity for precious metals in the world.
Members of this industry – from the smallest to the largest – contribute to the well-being and sustainable
development of European society and in many more respects than generally thought.
The European Precious Metals Federation
Following several years of low profile activity, twelve
well known European precious metal (PM) companies
and national associations have steered the foundation
of the European Precious Metals Federation (EPMF
a.i.s.b.l.) as an international non-profit association
registered under the Law of Belgium.
The federation represents the interests of its Members
vis-à-vis the European authorities on several topics of
relevance for the sector such as the safety of chemicals
and waste management; access to raw materials, re-
cycling and sustainability; energy and climate change;
trade, customs, tax and competitiveness; etc.
Gathering the experience, the knowledge and the
expertise of industrial and regulatory specialists of the
PM sector is achieved by establishing a cooperation
network, and where necessary, form alliances, with
organisations such as Eurométaux (of which EPMF is
a Member), the International Platinum Group Metals
Association (IPA) and other associations with whom
EPMF shares common goals and values.
By informing its Members on the evolving European
regulatory landscape, the EPMF is able to prepare, with
the contribution and support of its Members, common
position and/or response statements and strategies to
specific situations or questions. The promulgation or
implementation of these then strengthen the presence
of the PM industry in the relevant scientific, socio-
economic, political and environmental debates and
raise public and authorities’ awareness of PM and the
PM industry, while promoting compliance of the PM
sector towards EU regulations.
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5. Platinum grains and bars
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6. Supporting all industries any raw materials containing precious metals, from
Beyond jewellery and gold coins, the European Precious the most simple to the most complex. The substan-
Metals Industry designs and produces a wide array of tial amount of precious metals contained in the scrap
materials, industrial components and chemicals that and residues our consumer society generates can be
facilitate the production of – or are part of – thou- almost entirely reprocessed by the industry to preserve
sands of products that form the fabric of our economy. our planet’s resources.
These products significantly improve our health, our
environment, our everyday life and safety, and the Maintaining dialogue
competitiveness of scores of industries. The precious metals industry maintains a constructive
dialogue with the European authorities in all areas of
Thanks to its sustained research efforts, technological policy and legislation of relevance to the sector. This
expertise and innovative spirit, the European Precious dialogue is steered directly by the EPMF secretariat, its
Metals Industry strives to meet and exceed the chal- officers, delegates and Members as well as indirectly, by
lenges posed by legislative developments, particularly Eurométaux, the Brussels-based European Association
on the environmental and consumer health and safety for Non-Ferrous Metals of which the EPMF is a Member.
fronts. In so doing, the Precious Metals Industry en-
ables many other industries – automotive, aerospace, Leaders in fabrication
and petro-chemical among others – to meet increas- Although Europe does not have significant mining
ingly stringent environmental standards. sources of precious metals, it plays a major role in
product fabrication:
Preventing waste
The European Precious Metals Industry is unique in The European precious metals industry has a two
its ability to recycle, refine and generally optimise hundred year history of innovation and global lead-
Emission control catalysts are coated with precious metals
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7. Though precious metals have many industrial uses, they are usually known for their uses in jewellery
Europe’s Share of Gold Silver Platinum Palladium
World Mine Production 1% 8% 0% 0%
World Scrap Supply 12% 23% 25% 30%
World Product Fabrication 14% 21% 40% 20%
ership in advanced materials technology. Employing including the reduction in pollution and the improve-
more than 30 000 highly skilled workers across the ment of health. The industry has comprehensive recy-
European Union, the sector makes a critical contribu- cling capability and the ability to establish true sus-
tion to global market supply chains for these strategi- tainability in a world of diminishing natural resources.
cally important materials.
European precious metals technology is the defining
solution for many of the world’s pressing problems
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8. One World, our Own.
Let’s Sustain it
The Precious Metals Industry is committed to preserving our planet’s resources and respecting its envi-
ronment: by taking the lead in developing technologies that significantly reduce carbon monoxide, hyd-
rocarbons and other toxic emissions; by helping electronics manufacturers develop devices that use less
energy; by helping builders implement more energy-saving features in their constructions; and finally by
ensuring, to the best of its abilities, that all scrap containing precious metals is appropriately recycled. The
industry’s concerted effort to recover most or all of the precious metal content in waste materials consu-
med by end-users or generated by other industries has, over the decades, sharpened its understanding of
key environmental issues.
The European Precious Metals Industry, represented efficiency of industrial processes, and enhancing
by the European Precious Metals Federation (EPMF), medical technology to improve health care. The EPMF
unanimously supports the principles of sustainability. Member companies invest in the research and devel-
EPMF Member companies have aligned their activities opment of applications using precious metals that
and products so that they contribute to the welfare contribute to sustainable development, and into the
of people today whilst minimizing impacts on future ongoing training of our employees.
generations. The industry is making every effort to
adopt environmentally, socially and financially respon- …improving eco-efficiency
sible business practices. The EPMF Member companies continuously improve
the eco-efficiency of metallurgical processes and of
The EPMF commits to: the products made thereof. Manufacturing precious
metals out of a recycling process – so-called “urban
…creating sustainable and meaningful economic mining” – guarantees that these valuable resources
growth are re-used and that the demand for primary mining
Precious Metals have unique properties that make with its environmental impacts is limited. Furthermore,
them highly valuable for society. They are indispens- the industry is continuously developing technical so-
able materials that enable innovation and technical lutions that allow a reduction in the use of precious
progress, environmental protection and energy saving, metals in applications while maintaining their proper
and thereby enhance the quality of life. Precious met- functioning.
als are highly recyclable which means that they can be
recovered when a product containing these materials …communicating Precious Metals as showpieces
has reached the end of its useful life. They are compo- of a natural life cycle
nents which once having come to light from under- Precious metals are one of the treasures of our planet.
ground can be re-used time and time again. After being mined they are processed into products
that make our life modern, pleasant, sound in mind
…looking at economy as a whole and body, valuable or simply beautiful. Old precious
Like all materials precious metals consume resources metals can be recycled and given a new life. Precious
when being produced: land, water, energy, capital, Metals once having brightened up the neck of a beau-
and labour. However, within the continuous life cycle tiful woman may be today used in electronic circuits, in
of precious metals these costs are counterbalanced by CD-ROMs, in glasses or in pacemakers.
the benefits they have on individual lives, the environ-
ment, as well as on technical progress. These benefits …focussing on ethical business practices
include auto-catalysts that help to reduce emissions The high value of Precious Metals requires a special
from gasoline and diesel engines, improving energy focus on ethical business practices. EPMF Members
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9. 9

10. uphold fundamental human rights and respect cul- Examples of sustainable solutions:
tures, customs and values in dealing with employees
and others who are affected by our activities. The Pollution control
Precious Metals ethical principles engage employees, For over 35 years, autocatalysts containing platinum
business partners, customers, and all people directly or group metals have proven the most effective way to
indirectly affected by our operations. Our understand- tackle pollution generated by all types of petrol and
ing of ethical behaviour covers especially the areas of diesel vehicles. Autocatalysts eliminate 98% of harm-
health, environment, safety, labour, taxation, and the ful emissions from engine exhausts; without them, the
prohibition of anti-competitive practices. average family car would emit 15 tonnes of polluting
gases over a 10-year life span.
…standing up for equal opportunities
The Member companies of EPMF respect the rules of Ongoing advances in autocatalyst technology have
free and fair competition. We also expect our business helped auto manufacturers meet increasingly stringent
partners to abide by the same principles. Equal oppor- emission standards, keeping pollution in check despite
tunities comprise social responsibility, the ban of child the ever-growing number of cars on our roads.
labour and hard labour, no tolerance towards discrimi-
nation of employees and other people. The precious metals industry also contributes to
pollution control from stationary sources, such as
…initiating open discussions with stakeholders factories, through the manufacture of catalysts which
The EPMF and its Members are always looking for remove pollutants and odours from a variety of indus-
proactive solutions that contribute to sustainable trial processes.
development. Therefore we aim to engage partners
throughout the precious metals value chain: govern- Energy savings
ments, local and global communities, environmental The gold, palladium and silver found in electronic
and social non-governmental organizations, employ- devices ensure that they reliably make contact even
ees, customers, suppliers, media and other stakehold- after 1 million operations and that they do not over-
ers in constructive dialogues to learn about their ex- heat or waste energy. The layer of silver coating used
pectations. on industrial glass reflects heat radiation.
Electronics scrap waiting for recycling
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11. Over 90% of solar panels rely on silver conductors
This keeps out nearly 95% of the sun’s rays and also Today, the European Precious Metals Industry boasts
curtails heat loss through windows in wintertime. the most comprehensive and technologically
This heat reflection translates into huge savings by advanced refining facilities in the world. Virtually
reducing energy demand for housing and heating as all end-of-life products and production scrap contain-
well as air-conditioning needs in buildings and cars. ing precious metals can be successfully and eco-
nomically refined. Recoveries exceed 95% and, de-
Over 90% of solar panels used today rely on silver pending on the type of material, often surpass 99%.
conductors to activate the generation of electricity. Not only is the efficient recovery and recycling of
precious metals essential to the economics of the
One of the main devices required for the production industry, it also preserves the world’s natural re-
of glass wool – widely used for thermal insulation sources by significantly reducing the need for addi-
purposes – consists of a platinum alloy. tional new metal.
Recycling Moreover, the recovery of precious metals helps
Precious metals are unique raw materials. They can maintain the health of the environment. The
be reprocessed over and over again without this Precious Metals Industry encourages this by helping
ever impairing their qualities or performance. The fact dozens of industries develop appropriate collection
that they are as scarce as they are valuable has histori- processes.
cally driven the need to recycle and re-use them.
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12. Gold bar and silver granules
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13. Exceptional Properties
Gold is the most malleable and ductile of all metals.
It is routinely alloyed with other metals to render it
harder, particularly in the jewellery, dental and elec-
trical arenas. Chemically stable, gold does not cor-
rode or tarnish and remains an excellent conductor
of heat and electricity.
Silver remains the best electrical and thermal
conductor of all metals but, unlike gold, it tarnishes
easily. Slightly harder than gold, and with a lower
melting point, silver responds in such a way that it
guarantees the broadest range of applications.
Silver’s high reflectivity ensures its use in mirrors,
and the unique photo-reactive nature of its chemicals
guarantees its application in photographic products.
Platinum is also an excellent conductor and is mal-
leable enough to be worked into fine wires and
intricate shapes. Platinum’s high melting point and
resistance to corrosion allows it to maintain its per-
formance in even the most demanding operating con-
ditions, making it an unmatched high temperature
construction material. Also an exceptional catalyst,
platinum is widely used to promote chemical reac-
tions between other substances.
Palladium shares most of platinum’s properties de-
spite its lower density and melting point. It is most
widely used as a catalyst in car exhaust converters
and in the chemical industry.
Extremely corrosion resistant and boasting high melting
points, iridium, rhodium and ruthenium also present
unique properties making them suitable for scores of
critical catalytic and industrial applications.
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14. Here, There, Everywhere
From the alarm clock that awakens us, to the light switch we flip on. From the catalysts that reduce our
cars’ noxious emissions, to the mobile phone that connects us to our peers. Precious metals are active in
every aspect of our life. Every day, we unknowingly rely on them to work, travel, communicate and improve
our life. Here are but a few examples.
Electronic circuits Photography
Electronic components – connectors, contacts, printed Photographic film is coated with silver halide, which
circuit boards – are plated with a thin layer of gold undergoes a photochemical reaction when exposed
or palladium that helps dissipate heat and maintains to light. The images are developed onto photographic
the electrical properties of electrical junctions, as well paper, also coated with silver halide.
as the performance of the device in which they are
integrated. Glass
Due to their high melting points and resistance to
Electrical switches corrosion by molten glass, platinum-rhodium alloys
Many electrical components — switches, contacts, re- are used in fabrication of speciality glasses used in
lays and circuit breakers — boast silver tips to ensure display technologies and decorative glassware.
the quality of the electrical contacts.
Construction
Electrical devices The ultra-strong brazing joints found in industrially
The electrode layers used in 15% of the world’s engineered structures contain silver, as do photo­
ceramic capacitors – essential to the functioning of sensitive windows, routinely used in office buildings.
cars, phones, computers, TVs and even aircraft – are Platinum-rhodium alloys are used in the manufac-
made with a palladium-silver paste. ture of insulating and reinforcement glass fibre
Dentistry Cancer therapies
Durable and non-toxic, gold, platinum and palladi- Platinum is an active constituent in a range of drugs
um are used in a variety of dental applications. used in cancer treatment.
Music and data Medical devices
Both silver and gold are present in CD-ROMs. Their The excellent biocompatibility of platinum, combined
superior reflectivity allows for a greater density of in- with its radio-opacity ensures its extensive use in life
formation storage and guarantees high-quality restitu- saving cardiovascular implants such as defibrillators
tion of data. Computer hard disks are coated with thin and pacemaker electrodes.
layers of platinum and ruthenium that increase their
data storage capacity.
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15. Components for pacemakers are made of Platinum-Iridium alloys
Car safety and reliability of industries owe their existence to the unique cata-
Our cars’ fuel injection system, airbag inflation devices lytic properties of platinum, palladium, ruthenium,
and spark plugs all rely on the properties of platinum, iridium and rhodium.
palladium and iridium.
Fuel Cells
Vehicle exhausts Platinum and ruthenium are used in fuel cell elec-
The catalytic properties of platinum, palladium and trodes. This clean technology that combines hydrogen
rhodium are successfully harnessed to convert our and oxygen to produce electricity is finding applica-
cars’ and trucks’ harmful emissions – carbon monox- tions in battery chargers, residential combined heat &
ide, hydrocarbons oxides of nitrogen and soot – into power units, uninterruptible power supplies and fork-
non-toxic gases. lift trucks.
Basic chemicals
From fertilisers to polymers and from sodium hydrox-
ide to oil derivatives, the chemicals used by hundreds
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16. It’s about Saving Lives
Of the myriad applications utilising precious metals, those that improve our health are – ironically – the
least publicised. Most people know that gold, thanks to its biocompatibility, functional performance and
aesthetic effect, constitutes the basis for the majority of dental alloys.
But not everyone realises that it is also present in brain tomography equipment, or platinum in the elec-
trode tips and rings of defibrillators, or iridium in radio therapies that retard – and even neutralise –
cancerous growth. Precious metals revolutionise Medicine.
Preventing cardiac arrest different electronic micro-systems are constantly at
Precious metals have made their way deep into our work, unnoticed, in today’s cars. This number will only
veins: stents, the small, cylindrical metal gauzes im- multiply in the future. The indispensable, basic ele-
planted in cardiovascular patients to dilate arteries – ments for electronic aggregates in our cars contain
and prevent heart attacks – are accurately located by innovative and exceptionally precise components.
the surgeon thanks to the radio-opacity of gold and Many are made of precious metals.
platinum-iridium marker bands which allow the sur-
geon to monitor the position of the stent during the Activating airbags
placement procedure. Platinum is now used as an al- The ignition wire triggering the automatic inflation of
loying element in the stent itself. This delicate proce- a car’s airbag is made from a platinum alloy.
dure, during which the stent is threaded on a catheter
and then anchored inside the cardiac artery, requires Braking at will
continuous X-ray monitoring. The chips and contacts found in a car’s ABS system all
contain gold, silver and palladium.
Fighting cancer
The European Precious Metals Industry has developed Preventing fires
pharmaceutically active agents used in manufacturing Smoke detectors, routinely used in millions of house-
intravenous solutions to combat certain types of holds, contain a gold alloy placed between layers of
cancer. As a result, platinum compounds have now palladium. Domestic and industrial carbon monoxide
become an essential contributor to the chemotherapy sensors rely upon the stable electrical resistance of
battle against cancer of the testes, ovaries, larynx, ultra-fine platinum wires.
bladder and lungs. Since the introduction of platinum-
based therapies, the recovery probability for patients Preventing accidents
suffering from urological, cervical or ovarian cancer Fuses are routinely used to protect electrical equip-
has risen to over 90%. ment from power surges, thereby preventing danger-
ous incidents in both domestic and industrial environ-
Keeping Us Safe on the Road and at Home ments. Silver alloys, which exhibit unique electrical
Our society has evolved to the point where we take and metallurgical properties, are a critical component
our cars for granted. What’s more, we expect and as- of most electrical fuses.
sume that the cars we buy are safe enough to entrust
them with our children’s lives. We forget how intricate Purifying water
a car’s safety mechanisms can be, and what a huge Silver is famous for its anti-bacterial effect. During
role the minutest microchip can play. Hundreds of sterilisation with silver, the microorganisms contained
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17. Silver, ruthenium and iridium are used in water cleaning devices
in water – especially bacteria – are destroyed by physi- Swimming Pools
cal or chemical means. If standard water supply breaks A modern alternative to keeping swimming pool wa-
down, or if facilities are not equipped with adequate ter clean by adding chemicals is to use chlorination by
water supply technology, water silvering can be used electrolysis. These devices use ruthenium and iridium
to prevent the spread of diseases. coatings on their electrodes.
Product Precious metal(s) Applications
Automobiles Pt, Pd, Rh Pollution control catalyst
Pt, Pd, Ir, Rh Spark plugs
Pt Engine control sensors, airbag initiators
Pt, Pd, Ru, Ag, Au Electronics for engine management systems
Ag Heated rear windows, switches and contact
Almost all consumer Au, Pd, Ag, Ru Numerous applications of one or several precious
electronics… metals in essential electronic components such as
Audio equipment, Mobile multi-layer ceramic capacitors, printed circuit boards,
phones, Digital cameras, Televi- resistors, hybrid integrated circuits, etc.
sions and video, Recorders
Etc
Homes and buildings Ag Electrical distribution and switches, fuses, automation
switches
Pt, Ag Windows, insulation material
Compact disks Au, Ag An essential layer in recordable compact disks (CDR)
Computer hard disks Pt Thin layer in computer disks to increase the memory
storage capacit
Jewellery and watches Au, Ag, Pt, Rh Rings, chains, pendants, etc.
Ag Silver oxide for button cell batteries
Mirrors Ag Silver backing provides reflective properties
Photographic supplies Ag Silver-based chemicals are required to produce light
sensitive photographic film and paper
Glass and ceramic Au, Pt Decorative patterns and finishes
tableware
Pt = Platinum | Pd = Palladium | Rh = Rhodium | Ir = Iridium | Ru = Ruthenium | Au = Gold | Ag = Silver
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18. It’s about the Future – Today
The Precious Metals Industry is continuously developing new products and technologies to promote the
efficient use of energy, improve human health and make personal mobility more convenient, safer and less
harmful to the environment. Here are some of the exciting new applications that would not be possible
without precious metals.
Creating energy generation alternatives cochlear implant. This highly intricate device uses tiny
The European Precious Metals Industry is developing platinum electrodes to sense movement of sensory
vital components of proton exchange membrane fuel hairs in the cochlear and translates these into mes-
cells, an energy generating device producing electricity sages to the brain, creating artificial sound that the
from hydrogen and oxygen. These fuel cells produce no patient can “hear”
noxious emissions and can be considered as a “clean
power” source. Fuel cells not only conserve natural Shrinking electronic devices
energy resources such as oil and gas, they also Functional materials containing nanosized particles
truly improve energy efficiency. Fuel cells are already of precious metals are helping in the manufacture ever
used in auxiliary power supplies for mobile homes, smaller electronic components, which in turn are lead-
uninterruptible power supplies and battery chargers. ing to lighter, more functional devices requiring less
In the near future, fuel cells could play a significant energy consumption. Nanotechnology in the area
part in the development of zero emission vehicles. of computers has already increased performance and
memory capacity exponentially. In addition, the poten-
Restoring movement tial use of nano-gold particles on smaller and smaller
Research in helping paraplegics walk again, or arm microchips opens up a new frontier: electronics on a
amputees to grip more naturally with their prosthe- molecular level.
ses, has brought forth microsensors that can be
implanted in the brain to pick up brain commands Improving laser technology
– also known as nervous signals. These are then Single crystals are an integral part of laser technol-
forwarded to a microchip probe, implanted in the ogy and crystal growth requires the highest levels of
hand or leg, which actually triggers real movement. purity and thermal stability. By virtue of their high
The electrodes providing this neurostimulation are melting points and corrosion resistance, unalloyed
made of platinum. platinum and especially iridium are highly suitable
materials for growing different types of crystals.
Overcoming Parkinson’s disease
Neurostimulation will soon be used to help patients Moving closer to maintenance-free cars
suffering from Parkinson’s syndrome. A matchbox- Platinum and iridium alloys are used as electrode
sized stimulation device, implanted under the skin be- tips in new generation long-life spark plugs ex-
low the collarbone, generates mild electrical impulses pected to last longer than the life of the vehicle. These
which reduce the brain signals that trigger typical Par- electrode tips are highly resistant to corrosion, me-
kinson’s symptoms. An electrode, made of platinum chanical deterioration and combustion and are entirely
and iridium, is positioned in deeper areas of the brain maintenance-free.
and is connected to the larger device.
Building super-conductors
Hearing for the profoundly deaf Silver will become increasingly sought after to help
Patients whose hearing is so impaired that it cannot be reduce the amount of electrical power wasted in
improved by conventional hearing aids may receive a electrical cables due to resistance losses. Resistance-
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19. Mercedes Benz’ latest round-the-world fuel cell cars, applying
platinum, palladium and iridium-based technology
free flow of electrical power, at close to ambient further improvement. The use of a ruthenium alloy in
temperatures, can be achieved with multi-filament aircraft turbine blades allows the aircraft’s engines
cables that contain super-conducting oxide material to operate at much higher temperatures while burn-
integrated into tiny silver tubes. ing fuel more efficiently.
Burning fuel more efficiently
Today’s Boeing 747 burns two million tonnes of fuel
in its lifetime, demonstrating an obvious need for
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20. European Precious Metals Federation
Avenue de Broqueville 12
B-1150 Brussels
BELGIUM
Phone + 32 2 775 63 86
Fax + 32 2 779 05 23
info@epmf.be
www.epmf.be
To find out more about the EPMF Members, events
and activities, please visit our website
Photographies:
The photographs in this brochure were made
available by courtesy of the Member companies
of the EPMF