DeepSeek causes Chaos

Spot pricing for Gold $AU4421

Spot pricing for Silver $AU48.71

Spot pricing for Platinum $AU1522

This week Nvidia (and by extension the US500), fell of a cliff and lost 17% within the day. Almost 600 Billion was wiped from their market capitalisation. So what caused this massive fall in price? China released their own version of ChatGPT, “DeepSeek” clearly stating a massively cheaper build price, with extremely low user access costs.

As users flocked to this new LLM, ChatGPT and Nvidia fell horrifically. In a general sense, competition is healthy. But to discover a competitor can provide the same or similar service for a fraction of the price can be devastating. With ChatGPT promising that AGI (Artificial General Intelligence) could well cost billions of dollars to release, and Trump promising 500Billion in government spending towards AI, you’d be right in thinking that maybe the US500 got ahead of itself. AI could well be the bubble ready to take down the market.

Gold continues to look strong, while Silver is bouncing along just above its 200MDA.

It feels as if both metals are awaiting sharemarket positioning before deciding on the next leg up.

Enjoy today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA