Artificial Intelligence and Gold!
“Gold, with it’s track record of holding value, becomes a go-to”
At Republic Monetary Exchange we rely on thousands of years of accumulated learning from around the world about the nature of money, what kind of money is doomed to failure, and what kind of money is robust throughout changing governments and changing times.
In other words, we are relying on the accumulated wisdom of the ages, on human intelligence. It has deemed gold the world’s superior money throughout history. At the same time, we’re keeping a close watch on Artificial Intelligence. While it is no substitute for human intelligence and creativity, and is even dependent on the old computing maxim “garbage in, garbage out,” we like to test it out from time to time to see how it is doing.
This time we put Elon Musk’s new Artificial Intelligence app Grok 3 to the test…
Here is our Q&A with Grok:
Q. Why is the world turning to gold?
A. “The world’s growing interest in gold right now stems from a mix of economic jitters and shifting global dynamics. Uncertainty is a big driver—when trust in traditional systems wavers, gold shines. Take the economy: inflation’s been stubborn in many places, eating away at the value of cash, and central banks cutting interest rates make bonds or savings accounts less appealing. Gold, with its track record of holding value, becomes a go-to. Just look at 2022-2023—prices surged as inflation spiked globally.
Then there’s geopolitics. Tensions like the Russia-Ukraine war or U.S.-China rivalry have people and nations questioning the stability of fiat currencies, especially the dollar. Countries like China and Russia have been stacking gold reserves—China’s reportedly added hundreds of tons in recent years—partly to diversify away from dollar dominance. If the dollar’s reign as the world’s reserve currency weakens, gold could step up as a neutral asset.
Central banks are buying at levels not seen in decades—over 1,000 tons in 2022 alone, per the World Gold Council. That’s a signal to markets and individuals alike: if the big players are loading up, maybe it’s a smart move. De-dollarization talks are fueling this too—nations want a backup if global trade shifts away from the greenback.
On the ground, regular folks are reacting to the same vibes. Rising debt levels (U.S. national debt hit $34 trillion in 2024), stock market volatility, and even crypto’s wild swings push people toward something solid. Gold’s tangible; you can hold it, unlike digital assets or paper promises. Plus, with supply tight—mining output’s flat while demand climbs—prices get a boost, reinforcing the trend.
It’s not universal, though. Some argue gold’s overhyped—its price can still drop, and it doesn’t pay interest. But the world’s turn to it feels like a collective gut check: when systems shake, people cling to what’s lasted millennia. What do you think—does this gold rush feel like a blip or a bigger shift to you?”
That appears to be a general, but fair answer. However, Grok is a little behind the times. It cites the national debt, using $34 trillion dollars in 2024. But the national debt reached $35 trillion in mid-2024. Today, early in 2025, the national debt is $36.2 trillion. That is explosive and dangerous debt growth.
Grok also points out that gold doesn’t pay interest. That is so, however, interest of 4 percent is not too exciting with inflation in at least the 3 – 4 percent range. Half of NASDAQ stocks don’t pay any dividends, and the ones that do pay very little.
You will note that finally, Grok turns the question about buying gold back to you.
If you would like to learn more about both gold and silver and the growing challenges today’s global monetary systems are encountering, speak with an actual knowledgeable human being, a gold and silver professional, at Republic Monetary Exchange.