Gold boosts AI applications – and vice versa

Artificial intelligence (AI) became known to the general public with the victory of the supercomputer Deep Blue against world chess champion Gary Kasparov in 1997. The story is currently being broadcast as a TV series in Germany. It would take another 25 years for ChatGPT to launch, an application that enables practically anyone to use AI. Gold is an important prerequisite: without the precious metal, neither AI communication nor the use of modern technologies such as autonomous driving would be possible.

Special properties make gold indispensable

The exceptional conductivity of gold, its almost unlimited ductility combined to its enormous stability and the fact that it is not subject to any ageing processes: without the precious metal, the widespread use of AI would be almost inconceivable. The special properties of the precious metal very much facilitate modern high-tech applications. Without exception,  PCs, car computers, handhelds, smartphones and other electronic devices that enable the use of AI contain gold and other precious metals.

Industrial demand for gold is increasing due to AI-supported devices

According to estimates by precious metals research and consulting firm Metals Focus, the use of AI is also driving gold demand. In the first quarter of 2024, global demand for the precious metal rose 10 per cent in the tech sector and 13 per cent in the electronics sector, compared to the same period last year, according to the quarterly ‘Gold Demand Trends’ published by the World Gold Council. The trend continued in the second quarter of 2024: compared to the same quarter last year, gold demand was up 11 per cent in the tech sector and 14 per cent in the electronics sector – despite the fact that the precious metal has been moving from one all-time high to the next throughout the year.