The effect of A.I. on the precious metals market

Developments in A.I. are progressing rapidly, and A.I. now also influences the precious metals market. In this article, we look at two important effects: on the supply side at the mines and on the demand side in market analysis.

Gold is Needed for A.I.

Gold is used in all kinds of electronic devices such as smartphones and laptops, and thus also in devices that utilize A.I. An A.I. system requires hardware and memory to function, and gold is necessary for this. Additionally, a large amount of data must be stored on servers in data centers, which also use gold.

Although tech manufacturers have tried to use less gold in recent years due to the high gold price, a small amount of gold remains essential in many electronic devices. It therefore seems likely that more and more advanced A.I. systems will lead to increased demand for gold.

Copper Jackpot

A.I. itself can be deployed to find and analyze raw materials. In this recent video contribution by NOS News, it is explained how A.I. is used to locate a copper mine in Zambia.

If A.I. can be used to efficiently find new raw materials or to mine raw materials more efficiently in existing mines, this could result in more raw materials entering the market and consequently a price decrease.

Optimizing the Mining Process

Mining gold and other precious metals is a costly and energy-intensive process. A.I. may be able to optimize this process with certain algorithms. Think of more efficient sorting and analyzing of mined gold to obtain pure gold with less effort.

Gold can also be used to more efficiently test and determine the purity of gold. These steps can help to convert gold or other precious metals more efficiently and sustainably from raw material into investment products or jewelry.

Market Analysis

Gold can thus be used to develop A.I. and improve the gold mining process. But perhaps the most interesting option is market analysis and forecasting. A.I. may be capable of reasonably accurate predictions of gold market developments.

This makes it possible to respond more quickly to market fluctuations and to buy and sell gold more reliably.

A.I. and the Gold Market

It is clear that A.I. has an influence on the gold market, and that influence is likely to increase further in the coming years. How exactly this will develop is unknown, but it is likely that gold will maintain its positive role as a valuable raw material and safe haven in the years ahead.