Key Takeaways

• Silver plays a crucial role in advancing machine intelligence, serving as a vital industrial metal.
• The democratization of AI has accelerated its integration into everyday technologies.
• A massive $85 trillion investment is projected for the global technological build-out over the next 15 years.
• The current commodity supercycle is driven by minerals and materials, not oil.
• Fossil fuel abundance prevents demand destruction in the current oil market.
• A silver shortage is anticipated over the next 15 years due to production challenges.
• A long cycle of repricing and rebalancing is expected in the commodities market.
• The squeeze in silver is linked to its necessity in energy conversion processes.
• The US military faces disadvantages in munitions and minerals due to geopolitical commitments.
• Europe is expected to outperform the US economically due to its labor market dynamics.
• The shift from software to hardware necessitates vast amounts of minerals and materials.
• Technological advancements are reshaping investment strategies and economic dynamics.

Guest intro

Jordi Visser heads AI Macro Nexus Research for 22V. Prior to joining 22V, he was the Founder and Chief Strategist of Visser-Labs, a consulting firm dedicated to helping asset managers and investors navigate the disruption caused by AI and digital assets. He previously served as President and Chief Investment Officer of Weiss Multi-Strategy Advisers, where he spent two decades building out the macro strategy and developing the firm’s data analytics model for behavioral alpha.

The role of silver in technological advancements

• Silver is crucial for machine intelligence, acting as a gateway in technological applications.

• Silver is an industrial metal it is not a precious metal and it is critical as the gateway to intelligence in machines.

  — Jordi Visser

• The importance of silver in AI and machine learning is highlighted by its industrial applications.
• Understanding silver’s role is essential for grasping its impact on future technological developments.
• The demand for silver is driven by its necessity in the energy conversion process.

• That’s why there’s a squeeze in silver it’s because it’s required for this process it’s a bottleneck.

  — Jordi Visser

• The anticipated shortage of silver over the next 15 years poses challenges for production.

• We will have a shortage of silver for the next fifteen years because it is equally as hard to get more silver.

  — Jordi Visser

The impact of AI democratization on industries

• AI’s democratization has accelerated its integration into various sectors.

• It really became democratized… focused on getting intelligence up to a level to where it is today.

  — Jordi Visser

• This transformation has significant implications for the future of industries.
• The widespread use of AI is reshaping how businesses operate and innovate.
• Understanding AI’s role in everyday machines is critical for future investment strategies.
• The shift towards AI-driven technologies is influencing global economic dynamics.
• The integration of AI into industries is a key factor in technological advancements.
• AI’s democratization is a transformative force in the modern economy.

The commodity supercycle and its drivers

• The current commodity supercycle is driven by minerals and materials, not oil.

• Commodities are in a super cycle because normally there’s demand destruction and that happens from energy this one is about minerals and materials it’s less likely to be about oil.

  — Jordi Visser

• This cycle is characterized by unique market dynamics compared to historical trends.
• Understanding the factors driving this supercycle is essential for investment strategies.
• The shift from energy to minerals and materials marks a significant change in the market.
• This supercycle has implications for global economic and investment landscapes.
• The demand for minerals and materials is reshaping the commodity market.
• Investors must adapt to the changing dynamics of the commodity supercycle.

The future of oil demand and production

• There will be no demand destruction in the current oil market due to fossil fuel abundance.

• There’s not gonna be demand destruction this time because fossil fuels are plentiful we solved that problem in the 2010 to 2015 period with fracking another technology.

  — Jordi Visser

• The historical context of oil prices and demand destruction events is crucial for understanding current trends.
• The abundance of fossil fuels ensures stability in the oil market.
• The role of fracking technology in solving past supply issues is significant.
• Investors should consider the implications of stable oil demand in their strategies.
• The oil market’s stability contrasts with the volatility seen in other commodities.
• Understanding the dynamics of oil supply and demand is essential for future planning.

The economic forecast for technological investments

• A significant build-out phase for technology will require vast amounts of minerals and materials.

• I’ve heard during this week at davos jensen yuan on an interview with maria bartiromo put the number at $85,000,000,000,000 for the build out of the world to put intelligence into everything over the course of the next fifteen years.

  — Jordi Visser

• This forecast indicates a massive investment in technology and materials.
• The shift from software to hardware is driving this economic forecast.
• Investors must prepare for the substantial economic impact of this technological build-out.
• The scale of investment needed highlights the importance of minerals and materials.
• Understanding the economic implications of this forecast is crucial for stakeholders.
• The technological build-out will reshape industries and global markets.

The geopolitical implications of US military resource allocation

• The US military faces disadvantages in munitions and minerals due to geopolitical commitments.

• The CEO of Anduril… said if China wanted to take Taiwan there’s nothing the US could do at this point because they had just spent its the minerals and bullets that it had.

  — Jordi Visser

• This vulnerability has significant implications for international relations and security.
• Understanding the geopolitical context is essential for assessing global security risks.
• The allocation of resources to support Ukraine and Israel impacts US military readiness.
• The geopolitical landscape is influenced by military resource allocation decisions.
• Investors should consider the implications of geopolitical tensions on markets.
• The US military’s resource challenges highlight the need for strategic planning.

The economic outlook for Europe and the US

• Europe is poised to outperform the US due to its unique labor market dynamics.

• I love doing my weekly video and saying every week alright Europe’s gonna outperform the US for the foreseeable future… when you’re not allowed to fire people it’s a bad thing for equity markets during a software period it’s a very good thing when you’re at a point where the way you get your profit margins to go higher is by not hiring people.

  — Jordi Visser

• Europe’s labor market regulations provide advantages in the current economic climate.
• The impact of labor market dynamics on equity markets is significant.
• Investors should consider the economic trends in Europe and the US for strategic planning.
• Understanding the differences in labor market regulations is crucial for market analysis.
• Europe’s economic outlook presents opportunities for investment and growth.
• The comparison between Europe and the US highlights key economic trends.