Top of Mine: Costa sees mining as the cheapest way to invest in AI
CEO of Azuria Capital sees the sector as a distinct way to invest in AI, outside of technology companies.
Otavio Costa, the founder and CEO of Azuria Capital, believes that mining can be the most cost-effective way to invest in artificial intelligence (AI) currently, as the sector is gaining more attention from sovereign institutions, governments, and investors. Costa stated, "Institutions turn from 'we don't care about mining' to 'oh wow this is a critical industry that we need to make sure we take care of.'"
He asserts that the mining industry's size relative to global equity markets is much larger than it once was, and it is poised for significant growth in the future. Costa advocates for investing in junior mining companies, as they have the potential to become major players in the industry, similar to how technology companies grew from mid-tier firms.
He adds that the increasing passive investments in mining are indicative of this trend. Costa highlights the similarity between the current situation in mining and the debt levels during World War II, when 50% of the treasury market was backed by gold, whereas now, it is only 3%. Costa predicts that gold will rise in value due to the convergence of global money supply and its declining demand-supply gap.
He also notes that China's growing gold reserves and debt could be a solution to the US and China's impending issues. Spot gold closed Monday at $4,673.20 per ounce, marking its highest level since May 14.
Written by urgent.news from Mining.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
