Gold To Rally Even Higher On Nvidia, Big Tech? Schiff's Firm Says AI 'Has Looped Around To Depend On Our Oldest Kind Of Money'
Portfolio Pulse from Shanthi Rexaline
Schiff Gold, founded by Peter Schiff, suggests gold's use in technology, particularly in GPUs for AI applications, is set to increase, potentially driving its demand and price up. Nvidia is highlighted for using 'conflict-free' gold in its products. The firm anticipates the tech sector's competition and advancements in AI will make the cost of gold in GPUs less relevant, despite gold's primary use in investment and jewelry. Gold futures have risen 13% YTD, influenced by expectations of a Fed rate cut and inflationary economy benefits. SPDR Gold Shares (GLD) saw a slight decrease in its latest session.
April 24, 2024 | 8:40 am
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POSITIVE IMPACT
SPDR Gold Shares (GLD) experienced a slight decrease in its latest session, but the anticipated increase in gold's use in technology and the overall positive outlook for gold could support its price in the short term.
The expected rise in gold demand due to its increasing use in technology, alongside a positive market outlook influenced by potential Fed rate cuts and an inflationary economy, suggests a supportive environment for GLD's price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 90
POSITIVE IMPACT
Nvidia, recognized for incorporating 'conflict-free' gold in its GPUs, may see increased demand for its products as advancements in AI technology drive the need for high-performance GPUs. This could potentially boost Nvidia's stock in the short term.
Nvidia's use of gold in its GPUs and the expected increase in demand for high-performance GPUs due to AI advancements could positively impact its stock price. The company's near-monopoly in AI accelerators and the anticipated gold rush by tech companies further support this outlook.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 80