Precious Metals Miners: The Overlooked Winners in the AI and Inflation Era

The global economic landscape in 2025 has been reshaped by a confluence of structural forces-artificial intelligence (AI) infrastructure expansion, industrial decarbonization, and central bank de-dollarization-that are redefining the demand dynamics for precious metals. While gold and silver have surged to record highs, the miners supplying these critical resources remain underappreciated. This article examines how structural demand shifts and institutional allocation trends are creating a new regime for precious metals, with miners positioned as the most overlooked beneficiaries.

Structural Demand Shifts: AI, Industry, and Central Banks

Gold's reflects its enduring role as a hedge against inflation and geopolitical uncertainty. Central banks, particularly in the nations, have accelerated gold purchases, . This trend is part of a broader de-dollarization strategy, with the World Bank projecting sustained elevated prices into 2026. Meanwhile, silver has outperformed gold, , driven by its dual role as an industrial and monetary asset. Industrial demand for silver has surged due to renewable energy technologies and electric vehicles (EVs), with . The International Energy Agency's forecast of 4,000 gigawatts of new solar capacity by 2030 .

AI infrastructure further intensifies silver's demand. Data centers and semiconductors require significant silver inputs, while advancements in solid-state battery technology could increase silver usage per EV to one kilogram. These structural shifts are creating a supply-demand imbalance, with silver facing .

Graham Summers' Bull Case: Under-Investment and 2026 Outlook

, a prominent analyst in the precious metals sector, has long emphasized the under-investment in gold and silver markets. He argues that large pools of capital are now allocating to these assets, marking a "new regime" unseen in at least 30 years. Central bank purchases, particularly at a rate of 1,000 tons per year, are a key driver according to Summers. , citing supply dislocations and surging industrial demand. according to analysis, while institutional flows into silver ETFs, such as the Sprott Silver Miners & Physical Silver ETF (SLVR), have .

The under-investment in mining capacity is equally critical. Gold miners, for instance, , reflecting gold's stronger safe-haven appeal. However, silver's industrial applications and supply constraints position it for even greater appreciation. Summers' prediction of a 2026 bull market is rooted in the convergence of low interest rates, fiscal stimulus, and AI-driven industrial demand according to his analysis.

Institutional Allocation and the Overlooked Miners

Institutional investment trends underscore the growing importance of precious metals. The Sprott Physical Gold Trust, for example, , . Silver's duality as both an industrial and monetary asset has attracted similar flows, despite macroeconomic uncertainties. Yet, miners remain undervalued relative to the metals they produce. For instance, , reflecting underappreciation of their operational efficiency and technological advancements.

The disconnect between metal prices and miner valuations is particularly stark in the silver sector. With mine output projected to decline further, the sector's ability to meet surging demand from AI, EVs, and renewables will depend on capital allocation to exploration and production.

Graham Summers highlights this as a critical opportunity, noting that "silver's supply remains dislocated, and prices should go higher even as they retreat" according to his analysis.

Conclusion: A New Regime for Precious Metals

The interplay of AI infrastructure, industrial decarbonization, and central bank purchases is creating a structural bull case for precious metals. Gold's role as a store of value is reinforced by de-dollarization and inflationary pressures, while silver's industrial applications are driving unprecedented demand. Graham Summers' analysis of under-investment and supply deficits further strengthens the case for a 2026 bull market.

Precious metals miners, however, remain the most overlooked segment of this trend. With institutional flows accelerating and supply constraints tightening, miners are poised to outperform as the new regime takes hold. For investors seeking exposure to the AI and inflation era, the time to act is now.