The Precious Metals Summit in Zurich has provided a platform for veteran investors to articulate a compelling case for commodities, with particular emphasis on precious metals and the broader mining sector. The convergence of record global liquidity, structural demand from AI infrastructure, and mining companies generating unprecedented cash flows while trading at reasonable valuations has created what these investors describe as one of the best setups for commodities in decades.
The current environment is characterized by a fast deterioration of purchasing power in fiat currencies, a trend that should favor real assets like precious metals and commodity-related businesses. Global liquidity continues to expand, with central banks like the People’s Bank of China and the New York Fed injecting substantial liquidity into their respective systems. This trend is expected to continue supporting commodity markets, despite recent market volatility.
One of the most significant drivers of commodity demand is the AI infrastructure buildout. The scale of this investment cycle is substantial, with the US needing to build at least 350 gigawatts of power dedicated to AI-affiliated industry. This represents a trillion-dollar investment cycle for power generation alone, excluding associated costs for electrical grids, transmission infrastructure, and computing hardware. The magnitude of this investment cycle is beginning to impact major technology companies, with some turning to debt financing to fund AI development. This creates potential financial system risks and suggests that government support will be necessary to complete this infrastructure buildout.
For commodity investors, this infrastructure cycle represents unambiguously positive news. The real assets required for this buildout, such as concrete, steel, and particularly copper, will drive demand. Moreover, government participation in this infrastructure cycle means continued liquidity injection into the global economy, which should prove supportive for gold prices. The AI infrastructure buildout may ironically serve as the catalyst for the next major bull market in the broader commodity cycle.
The third quarter of 2025 demonstrated the financial leverage inherent in gold mining operations. Companies like AngloGold Ashanti and K92 Mining have shown exceptional margin expansion, with AngloGold Ashanti’s quarterly operating cash flow increasing from $300 million to $1.4 billion. This margin expansion is precisely why investors allocate capital to gold producers. These companies now have strategic flexibility to pursue growth through acquisition, accelerate organic development projects, or return additional capital to shareholders.
The M&A cycle is accelerating as producers with pristine balance sheets deploy capital through strategic investments and acquisitions. Recent examples include B2 Gold taking a 19.9% stake in Prospector Metals, Probe Gold’s acquisition, New Gold’s pending takeover, and Gold Fields committing $50 million to junior investments. High-quality copper assets in North America are attracting significant capital, with Arizona Sonoran Copper raising $75 million and Ivanhoe Electric securing $200 million debt financing for the Santa Cruz project. This reflects investor recognition of supply constraints and structural demand growth from energy transition and AI infrastructure requirements.
The precious metals sector is entering a potentially transformative period supported by multiple converging factors. The current environment represents one of the best setups for commodities in decades, driven by record global liquidity, structural demand from AI infrastructure, and mining companies generating unprecedented cash flows while trading at reasonable valuations. This analysis suggests that the sector has entered a period where real assets should outperform over the coming decade, creating opportunities for investors who understand the timeline and trust management execution.