A surprising industry is fueling a new rush for gold — and it’s not slowing down
Investors have long prized gold as a hedge against inflation and economic uncertainty, but one of the world’s fastest-growing industries is now fueling a new source of demand for the...
By Fox News · Fox News
Investors have long prized gold as a hedge against inflation and economic uncertainty , but one of the world’s fastest-growing industries is now fueling a new source of demand for the precious metal. The buildout of artificial intelligence (AI) is driving investment in advanced semiconductors, servers and the sprawling data centers needed to power the technology. That expansion also requires a range of materials used in high-performance electronics, including gold. And the AI boom is creating a growing need at a time when gold is already historically expensive. Despite those high prices, tech companies aren't necessarily switching to cheaper materials — suggesting demand for golf could continue to grow alongside AI. A QUIET RUSH FOR GOLD IS SWEEPING THE GLOBE — HERE'S WHY COUNTRIES ARE STOCKPILING IT Gold is valued in electronics for its conductivity, reliability and resistance to corrosion — and its role in some technology applications is proving resilient despite trading at roughly $4,153 an ounce on Oct. 5, up nearly 6%, or about $225, from a year earlier. Joseph Cavatoni, a gold market expert and senior market strategist for North America at the World Gold Council, said companies would typically consider cheaper alternatives after developing technology that relies on gold. But that isn't necessarily happening. "They might pioneer a technology with gold involved and then say, ‘Let’s find something cheaper like tungsten to replace it,’" Cavatoni told Fox News Digital. "But what we’re finding in this case is they’re not." ONE OF THE WORLD'S HOTTEST INDUSTRIES IS SPARKING A BLUE-COLLAR JOBS BOOM Technology demand is already showing signs of growth. Gold demand from the sector rose 2% from a year earlier to 80.4 metric tons in the second quarter, according to the World Gold Council. Electronics demand climbed 4% to 68.3 tons, fueled by AI infrastructure, high-end semiconductors and advanced components. Cavatoni said gold can offer advantages over substitutes in appl…