The two superpowers, the United States and China, are vying for the raw materials needed to develop artificial intelligence: precious metals and rare earth elements. Analysts point out that precious metals and commodities are becoming a new trend in the investment market due to their scarcity.
High demand for artificial intelligence drives up precious metal prices.
The rapid expansion of artificial intelligence (AI) infrastructure is clearly reflected in the price trends of core commodities. Metals such as copper, aluminum, lithium, cobalt, and silicon, widely used in data centers, power grids, chips, and energy storage systems, are considered indispensable inputs for AI development. The market expects demand for these metals to triple by 2030. Meanwhile, precious metals such as gold, silver, platinum, and palladium, in addition to their safe-haven properties, also play a role in semiconductors and advanced manufacturing processes. CNBC market analysis suggests that precious metal prices will continue to reach new highs.
Why does the United States insist on Greenland and "taking over" Venezuela?
When political situations are turbulent, precious metals are often seen as a safe haven for investors. Furthermore, precious metals are crucial for the development of artificial intelligence. When geopolitical conflicts are frequent, superpowers like the United States may take bold actions to secure their control over rare earth resources. Other countries that want to succeed in the artificial intelligence race must also defend their domestic rare assets.
Current political focus is precisely on regions with concentrated key mineral resources. Greenland possesses crucial minerals needed for advanced artificial intelligence chips; Venezuela has oil; Ukraine boasts Europe's largest lithium reserves and major global titanium resources; Russia has long focused on the mineral-rich Arctic region. China, through its influence in the "lithium triangle" formed by Chile, Argentina, and Bolivia, controls approximately 70% of the world's lithium processing capacity. These countries are the focal points of the power struggle between the United States and China; whoever gains control of these countries will gain access to abundant rare earth elements.
Whoever controls rare earth elements will dominate the future.
This battle for rare earth elements is undoubtedly a race that Western countries must win in order to gain a dominant position in the future development of artificial intelligence. Whether it's strengthening defense capabilities or building infrastructure, the ultimate key lies in possessing advanced AI technology and critical rare earth elements.
Why have commodities become the focus of the investment market?
Analysts point out that control over rare earth resources will become a major driver of future market volatility, and significant fluctuations may become the new normal in the stock market. Therefore, investors should closely monitor geopolitical developments to predict market trends. Many previously little-known commodities, such as gallium and germanium, are gradually attracting market attention. These metals are key materials in semiconductors, artificial intelligence chips, fiber optic systems, and military and night vision equipment, and are crucial to the development of artificial intelligence technologies. Due to the scarcity of these metals, future demand may exceed supply. Therefore, allocating to related ETFs and mutual funds is a worthwhile investment strategy to consider.
This article, titled "Powerful Nations Compete for AI Resources, Precious Metals and Rare Earth Commodities Become New Investment Focus," first appeared on ABMedia, a ABMedia .
