Frank Holmes and Denis Laviolette: A.I. Technology Will Transform the Future of Mining
Frank discusses how the most successful hedge fund in the world, Ray Dalio’s Bridgewater fund has always been an advocate for gold. Ray has held gold as a counterweight for imbalances in government monetary policy. Morgan Stanley recently reported that the second-best performing asset class for the last twenty years has been gold. It’s incredible how much of the media is anti-gold. Frank recommends investors hold ten percent of their portfolio in gold and gold equities and to rebalance often.
Frank’s Jekyll Island presentation is all about inductive and deductive thinking. Inductive learning is using your gut and is similar to how A.I. works. They have conducted a lot of regressional analysis for quant research. Since they launched the project, it has worked very well. For them, A.I. gets rid of bad stocks and underperforming companies while outperforming most analysts.
Denis discusses how they are using technology to reduce the risk profile. Goldspot can unlock new information from the data companies already own. Essentially it’s machine-assisted exploration that helps companies think on an entirely new level.
Frank explains how copper is key to judging economic growth as it responds very quickly to world economic conditions. Currently, however, copper is in deficit, and hence, there is a disconnect now. He thinks copper will suddenly move to $4.00 without much warning. The situation is similar for zinc.
Denis sees more and more companies becoming interested in Goldspot and their models. Today a lot of investors will appreciate that.
Talking Points From This Week’s Episode
• Gold is one of the worlds best-performing assets.
• Media continues to be against gold.
• Using A.I. to find patterns and good companies.
• Copper and zinc may be in for a surprise rise.
Frank E. Holmes is the Independent Chairman of GoldSpot Discoveries Inc. and is also Chief Investment Officer of U.S. Global Investors, a leading mutual fund and asset management firm. He is a much sought out thought leader in both the technology and mining space and a pioneer in using a quant-approach to investing. He is a regular guest in business media. His Frank Talk CEO Blog is one of the most widely read in finance.
Denis Laviolette is President, CEO & Director of Goldspot Discoveries. Having over ten years of experience in exploration, mine operations, and capital markets. Worked in Northern Ontario (Timmins, Kirkland Lake, and Red Lake), Norway and Ghana and took on a diverse array of tasks, including grassroots exploration, start-up mine management, and advanced mine operations.
Worked as a Mining Analyst with Pinetree Capital Ltd. and now serves as a Mining Analyst and V.P. of Corporate Development for ThreeD Capital Inc. President of New Found Gold Corp. and Director of Xtra-Gold Resources Corp., Northern Sphere Mining Corp., and Tartisan Resources Corp.
BSc Earth Sciences (Geology) from Brock University.