Could the Artificial Intelligence (AI) revolution boost gold demand?
According to a report by the World Gold Council, the answer is yes.
Gold’s excellent conductivity and its malleability make it an important component in the manufacture of electronic devices. Gold can be formed into extremely thin wires, making the metal ideal for use in small computer chips.
Demand for gold in the electronics sector peaked in 2010 at 328 tons. But as the cost of gold skyrocketed (rising from $250 to $1,800 an ounce between 2001 and 2011), manufacturers scrambled to reduce their gold usage. In 2023, the electronics sector used 249 tons of gold. Through the first three quarters of this year, demand for gold in electronics stood at 245 tons.
Poster Comment:
Never knew that much gold went into electronics. I remember in 2011 Obama was firing missiles at Libya. Each missile contained a Monster Box (500 ounces) of silver.