In 1947, De Beers launched one of the world’s most successful ad campaigns… Ever.
“A Diamond is Forever.”
This long-running campaign linked diamonds with everlasting love, an ultimate symbol of commitment.
Forcing every budding bachelor thereafter to figure out how much he could spend to wed his sweetheart.
The ad didn’t just make sales; it created a culture, and it’s only 80 years or so later that we can see the genius in this marketing ploy.
And that’s got me thinking… Are we in another culture-shifting trick?
Artificial intelligence
You see, AI is not inherently breakthrough. Like all inventions, it’s been a sequence of steps, gradually shifting from one minute discovery to the next.
AI, in one form or another, has existed for more than a decade, or perhaps far longer than that, depending on how you define ‘artificial intelligence.’
Companies have been developing computer models for decades using a form of artificial intelligence.
Ray Dalio talks about the computer models he developed in the 80s that allowed him to generate billions for his hedge fund.
This was all intelligence of an artificial kind, and it’s been around for decades.
Except we’re told that the AI revolution began in late 2022… Right alongside the launch of ChatGPT.
Was that really a breakout moment for AI, or were we all fooled?
AI: Marketing Campaign of the Century
Cast your mind back to the early days of ChatGPT’s release. Elon Musk was on the sound box, promoting the dangers of AI.
Warning governments, “this thing needs to be slowed.”
A special government action group of the world’s most important tech titans was convened to meet in Washington.
Fearing the imminent destruction of mankind, they issued a joint statement expressing their concern.
But in the background, they were piling billions into expanding their AI capability.
We were told that AI would soon outsmart humans and that our jobs would be gone within weeks!
Of course, that never happened.
AI: dripping in marketing sensationalism
Back in 2022 and 2023, the tech industry used the most potent emotional tool to promote its agenda: fear.
Fear gave AI far more credit than it deserved.
And timed perfectly with critical product launches, stirring global excitement to kickstart mass capex projects in AI data centres.
It all has a somewhat familiar ring to it…
Remember the renewables euphoria that turned to bust?
When that ended, tech titans quickly found a new way to get investors to hand over their money… AI.
Rinse and repeat.
So, what happens if/when the AI theme follows the renewables path?
Simple. Equities sell off.
Especially in the US.
But that’s precisely what resource investors are waiting for.
As markets face the reality that they’ve been handing cash hand-over-fist to these tech giants, they’ll finally shift to investing in real things.
Hard assets… Commodities.
Until next time.
Regards,
James Cooper,
Mining: Phase One and Diggers and Drillers
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