Are AI companies the only investable asset left now?
Similar to the Dot com frenzy, the housing crisis, the SPACs, it seems that every company is keen to twist and sell their company as adopting “revolutionary AI” or advertised as “AI-enhanced” or some combination of AI tagwords as a means of marketing their brand or product. Other than the odd exploration company utilizing mapping technologies, it’s difficult for the 19th century style mining business to adopt the same sales pitch–so does this mean they’re out for the count?
Hardly
Even with great equity performance in the gold space over the last year and a rise of input costs from year to year, the gross margins on many of producing companies is enormous.
I believe the fact that this rise in gold price has been so sudden, coupled with the fact that this market is so niche, there’s an opportunity here that has been lost amongst the semiconductor and AI-themed mania. Of course, this is not investment advice and you should do your own due diligence, but it should serve as a reminder that there’s multiple ways to gain from gold’s performance–even if it doesn’t involve a computer and a chatbot.
Till Next Time!
