Live forever, never work again… But we still have a whole lot of digging to do first

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Don’t you think an omnipresent, AI super-intelligence has better things to do for humanity than try and take our jobs?

Turns out major AI companies are starting to switch focus (and compute) towards making trillion dollar scientific and technological breakthroughs to help humanity...

Instead of helping us with our menial tasks at work... or with putting robot heads onto pictures.

Find out how this will make small ASX stocks go up in a second.

In other news, a 14 year “cup and handle” chart formation on the BCOM commodity index chart looks like it's just about to break out.

Meaning an all commodity boom is about to happen?

But first (quickly) - Rare Earths stuff has been happening overnight...

Those “suddenly famous” 17 niche minerals that are critical for all sorts of important military, advanced technology, AI and energy uses...

Where China controls nearly all supply - and isn't shy about withholding it from countries it doesn't like on any given day.

(I know you know, explainer is for our new readers)

Last night Reuters reported that some Chinese rare earths suppliers are refusing to ship rare earths to the USA:

(source)

Rare earth stocks in the USA all popped on the Reuters story Friday.

Should be a good day for ASX listed rare earths stocks on Monday... including our stocks SGQ, PNN, ION and LSR.

(and kinda OD6 - they have a rare earths project but we are in it for the fluorspar.)

Last week I shared how I got sudden gold and silver FOMO and (stupidly) bought a bunch of gold and silver call options

Last week, silver and gold had been running up for about 8 weeks in a row.

And I suddenly got that itchy FOMO...

“It’s finally going to happen, silver is going to $300, gold to $10,000”

“My small ASX gold and silver stocks are going to go up!”

So I did the same thing as I did early last year when I got this same, itchy precious metals FOMO....

I bought a bunch of silver and gold call options that would pay off in the event of a near term precious metal prices “melt up”.

Silver to trade above US $106 by 24th November 2026 (silver was at US $70)

Gold to trade above US $6,500 before 24th March 2027 (gold was at US $4,600)

(read it here)

Long story short - about a day later the US Fed chair gave a speech, said the word “hike” 3 times, markets took it to mean rate hike and gold and silver got smashed - down over 5% each in a few hours.

And my new, near-dated call options received a heavily magnified smashing - down nearly 80% at one point - OUCH.

Lesson learned?

Nope - I bought some more post smack down, I am now the proud owner of some MORE near dated calls plus a new silver call:

Silver to trade above US $111 by 26th January 2027

And averaged down on the silver over $106 by November 2026

As of today - here’s how it's going so far - makes for some pretty grim reading and a cautionary tale on call options:

(IMPORTANT: my stupid silver and gold calls are purely for entertainment purposes only, it's a dumb bet on a highly unlikely, near term precious metals melt up based on emotions and gut feel, I don’t know what I’m doing with options plus the $ amounts I fully expect to lose - NOT financial advice AT ALL)

A few more months to watch this likely trainwreck fully unfold...

For example, even if silver is at $100 by the end of the year (happy days!) I still lose everything on the call options.

Everything had been actually looking up for silver and gold during the last 5 days post US Fed Chairman Warsh’s speech smackdown.

Silver was dancing back around $70, gold had been tracking up nicely too...

(back towards where I first opened the original calls, only 7 days lost.)

Then something happened around 10:30pm last night... something bad (AGAIN??)

SUDDENLY: Gold smacked, silver smacked, my call options? Ultra smacked - WTF?:

Quick, hop into Bloomberg to see what might have happened:

A US jobs report where new jobs added “far exceeded” estimates (read it here)

Good jobs report means increased chance of interest rate hikes means knee jerk sell off in precious metals.

Anyway, these are just day to day knee jerk reactions, which I am suddenly sensitive to because of my new call options.

The longer term picture for gold and silver hasn't changed and we are here for the next run, and sticking to our wheelhouse of small ASX listed gold and silver stocks.

The call options are just entertainment while we wait for that next run to happen and take our gold and silver stocks with it.

In context - in the last 8 weeks gold is up 8.7% and silver is up 15%.

Hang on - US new jobs report far exceeds all expectations? Wait, wasn't AI meant to be taking our jobs? What's this got to do with small ASX stocks?

An "exceed all expectations” US new jobs created report?

So does this mean AI is not coming after our jobs anymore?

(stay with me this will come back to small ASX stocks going up in a minute)

Over the last couple of years, all we have been hearing is how AI is coming for all our jobs (I wrote a series on it in March earlier this year).

It's no wonder in western countries people are generally skeptical and worried about AI and AI datacentres.

Not in China - all they get fed by their media is stories about how AI is going to be great for everyone.

One throwaway stat I heard during the week “in China 80% of the populace is pro AI, in the USA 80% of the populace is against AI.”

So the USA has an AI public relations problem.

Over the last few weeks, in my internet and podcast travels I have noticed the giant western AI companies are starting to change their tune a bit.

(solving a PR problem ahead of blockbuster IPO’s maybe?)

Originally we were told AI is going to take our jobs

But now it's starting to sound like the major AI companies are switching focus to using their AI super intelligence for discovering trillion dollar scientific breakthroughs...

Makes sense - and the payback sounds a lot bigger if successful.

When you think about it, is it really the best use of the most advanced, all knowing superintelligence the world has ever known to do YOUR day job?

Wouldn't its time and computing effort be better spent trying to find a cure for cancer?

Unlock space travel? Control the weather and stop natural disasters? Make humans live forever? Develop an infinite food source?

Would a super-intelligent AI oracle even WANT to help you finish that boring budget spreadsheet you need to do by 5pm so you can email it to your manager?

From what I've been reading it sounds like the major AI companies are switching to solving giant problems for humanity first, instead of focusing on taking our jobs.

(ie scientific and technology breakthroughs versus consumer facing applications.)

Who knows, once all our problems are solved by AI and we all live forever, we’ll probably be begging for it to take our boring jobs...

Either way, our prediction is that AI led scientific and technological breakthroughs will lead to a series of commodity booms...

That culminates in the biggest commodity boom in the history of planet earth.

Which means small ASX resource stocks will go up.

(if we are right... we could be wrong)

Biggest commodity boom in human history coming? Here’s what things might look like over the next 10 years.

Two weeks ago I laid out in detail a theory on how AI unlocking how to make humans live forever combined with AI (infinite intelligence) and robotics (infinite labour)...

Will lead to the biggest commodity bull run the world has ever seen.

AND lots of commodity bull runs just to even get there. (read it here)

(plus why the $40 trillion of USA government debt is going to see the USA print money to make sure they rapidly achieve extreme economic growth through AI and robotics)

And with major AI companies looking like they are starting to allocate their rapidly advancing super-intelligence power at solving global problems and scientific breakthroughs INSTEAD of helping you do spreadsheets at your job (or adding robot heads to pictures)...

It may come faster than we think.

Here’s what the next 10 years might look like (from our note 2 weeks ago):

(big AI driven scientific and technology breakthroughs are the key to get here)

Intelligence becomes free and infinite (AI). Not just cheap... literally free. A million Nobel-level minds running in a datacentre, thinking 100x faster than you, 24 hours a day, for the price of the electricity.

Labour becomes free and infinite (robots). Billions of humanoid (and other) robots that never sleep, never strike, never take a sickie - don’t even need to take a quick dump mid-shift.

(no more lost productivity from 9:58am sudden market open poo’s while skulking in the office toilet cubicle looking at your watchlist)

Musk reckons 10 billion robots by 2040. Some think it's 100 billion by the 2060s. Currently in 2026 I already have one robot:

Disease gets solved. The entire 21st century's worth of medical progress, compressed into a decade. Cancer. Alzheimer's. Genetic disease. Heart disease. Gone.

No one dies anymore, except from old age...

Then aging gets solved. Lifespan doubles. Then doubles again. People stop dying of being old.

It even looks like age REVERSING is on the cards:

Work becomes optional. Within infinite intelligence and labour, no one will need to work. People will need a hobby. Like growing your own tomatoes even when the shop sells them for nothing. Or play sport. Or watch TV. Or travel.

(NOTE: Ok, so AI probably WILL end up taking our jobs... but in a good way and on our terms, it’s too busy solving all the world's problems first)

You can think of and design anything you want, and it just... appears. Want a house? Describe it. The AI designs it overnight, the robots build it by Friday. Want a boat, a hospital, a city? Same process. Same week.

Nobody is “poor”. Goods and services cost approximately nothing, because labour costs nothing anymore.

Bored humans with infinite free time will start banging each other a LOT more... meaning more kids. Everyone has no job to do and can get anything they want - instant infinite free time = more human fraternizing, and we know where THAT leads. At home, no more “not tonight, honey, I’m too tired from work” = more and more kids.

Human race numbers explode and more and more “stuff” is needed

Then it starts compounding. AI designs a better AI. That AI designs a better one again. Robots build better robots, and those robots build better robots again - each generation smarter, faster and cheaper than the one that built it.

No design meetings. No budget approvals. No waiting for someone to get back from lunch or from the toilet cubicle after market open.

Progress stops happening at “human speed” and starts happening at machine speed - the next generation arriving in months, then weeks, then days.

And it's infinite - every person and every country in the world has access to it.

(and $40 trillion dollar debts fade away into the background - all that money printing to deliver this economic miracle was worth it.)

Sounds great - infinite intelligence, infinite labour, infinite lifespan.

There's just one small problem with the whole picture.

The one thing that is NOT infinite in this scenario.

You still have to build everything out of “something”: minerals, metals and materials - physical “stuff”.

Commodities - finite natural resources.

Equals small ASX resource stocks go up.

It then went on to summarise that to even get to the starting point of this infinite everything (except minerals and hard commodities) world, we would need to build billions of robots and data centres.

And print a lot of fiat currency to get there at the speed we want (gold and silver up)

(PLUS no doubt building robot armies to steal resources from other countries that we need to build more robot armies)

So two weeks later - how is this “everything commodity boom” coming along?

All commodity boom update - another cup and handle about to break out?

~18 weeks ago I wrote about an “all commodities boom” that would lift all resource stocks.

And explained the BCOM commodities index - a handy chart that tracks a basket of commodities.

Basically when BCOM goes up, it's a commodities bull run, when BCOM goes down, it's bearish on commodities.

Here’s what was said on May 2nd 2026 (18 weeks ago):

So we think we are moving into what the textbooks call a “commodities super cycle”.

Which again, is good for all resource stocks.

Given how overweight we are in early stage resource stocks, and how good an “every commodity boom” would be for our Portfolio...

It was time to find a better way to track “all commodities” than eyeballing the average amount of green on a table.

The Bloomberg Commodity Index (BCOM) is the basket index that tracks a bunch of commodities at once (oil, copper, gold, wheat, the lot).

So when it's going up, it means commodities as a whole are running, which is exactly the macro tailwind our resources small caps need.

(read the full article here)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

You can see in the image above from our May 2nd article how the BCOM moving up has driven all our favourite small cap resource stock bull markets over the last 20 years (and even earlier).

(18 weeks ago the BCOM index had just popped above its “early 2020s” post COVID battery metal boom highs - surely the momentum, currency debasement and all the geopolitical macro would now take it higher...)

Literally ~10 days after our May 2nd prediction that BCOM would keep running, the BCOM index proceeded to start violently shitting the bed for about 7 straight weeks (compounding May and June pain on small ASX stocks):

(source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

UPDATE: The GOOD news is that, since July 1st, the BCOM index has been going up again:

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

It's now back just above its May peak (where we called the start of an all commodity boom)

And if we zoom out a bit back to 2013 to today - we can see a juicy looking ~14 year “cup and handle” formation that is just on the cusp of breaking out:

(source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

Remember that 50 year silver price “cup and handle” formation we talked about for ages?

The chart pattern that looked like a cup and handle, and when it broke out of that pattern the silver price went nuts:

(source)

The past performance is not and should not be taken as an indication of future performance. Caution should be exercised in assessing past performance. This product, like all other financial products, is subject to market forces and unpredictable events that may adversely affect future performance.

We are watching this one closely, because BCOM up = commodity bull market.

Which = small ASX resource stocks go on a run.

And It looks like it's just about to pop.

(here’s the link where you can track the BCOM index)

Have a great weekend.

Next Investors

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