In the latest episode of the Money Metals Midweek Memo, host Mike Maharrey explores the growing risks of artificial intelligence in cybersecurity and its potential impact on financial trust. He highlights a fabricated story about a tiger calling for help, which included AI-generated images that initially seemed authentic. Maharrey warns that as AI-generated content becomes more convincing, public trust in institutions, media, and even money could erode. He suggests that this uncertainty may drive people to value face-to-face interactions and physical assets.
Maharrey also discusses the surge in cybersecurity vulnerabilities and attacks, dubbed “Black October” by some in the tech industry. Google Threat Intelligence reported a significant rise in monthly vulnerability disclosures, from 5,045 in January to 10,740 in August. Technology commentator John Molinovich described widespread attacks affecting government, education, technology, and banking sectors. He noted that AI models can operate continuously and be deployed in large numbers, posing a serious threat to digital security. Maharrey cautions that even authorized access to financial accounts by AI agents could lead to unintended actions.
To mitigate cyber risks, Maharrey recommends holding physical gold or silver as a backup. He argues that digital assets, including Bitcoin, rely on electricity and internet access, which could be disrupted by cyberattacks or natural disasters. Maharrey points to Russia’s use of gold reserves as an example of how hard assets can provide stability when financial access is constrained. He also highlights the durability of gold, citing its 6,500-year history as both adornment and money, including findings from a Roman cemetery in Bulgaria.
The episode also covers silver’s sharp correction, which saw the price drop from over $120 an ounce in January to above $50 at the time of recording. Technical analyst Jesse Colombo suggests that investors may be overlooking the potential for another strong move higher, recommending accumulation while silver remains relatively cheap. Maharrey concludes by promoting Money Metals’ offers, including random-year American Silver Eagle coins at a premium of $5.97, and other gold and silver products.