When investors begin to wonder if a trade has reached unsustainable levels, “bubble fear” is a phrase that can quickly bring a bull run to a halt. Right now, it seems investors may be wondering about the AI trade, which was among the wildest runs in history — every chart pointed straight up, every CEO claimed an AI pivot, and every investor wanted in on the action.
Now, however, the realities of slowing growth, stretched valuations, and high interest rates are setting in, and the excitement surrounding AI appears to be cooling. Analysts at Bank of America and Wells Fargo are urging clients to lock in their gains and move money into “undervalued real assets.” This type of rotation typically occurs at the end of a hype cycle — when enthusiasm subsides and capital begins to seek tangible value. Historically, this has been when the tech sector’s momentum fades, and gold begins to shine again.
Why Gold Is Gaining Attention
Gold has climbed to approximately $4,100 per ounce in 2025 as investors hedge against macroeconomic uncertainty. Inflation remains high, central banks continue adding gold to their reserves, and U.S. deficits are growing rapidly. The sentiment shift is striking — optimism for AI is giving way to realism, while gold is once again being recognized as a reliable store of value.
Gold doesn’t need 50% growth projections to maintain value — it thrives on doubt, and there’s plenty of that across global markets today. JP Morgan recently stated that gold could “outperform risk assets” over the next six months, while the World Gold Council reported a sharp increase in gold ETF inflows following a relatively quiet 2024. Central banks, led by China and Turkey, continue buying at a near-record pace; World Gold Council data show approximately 200 tonnes of net purchases year-to-date through September 2025, with external estimates pointing to a ~750–900 tonne full-year pace — among the strongest in over a decade.
A Hedge Against AI Hype
Investors who profited from the AI boom are now looking for safer opportunities that still offer upside — and gold miners fit that profile. While physical gold provides stability, junior explorers provide leverage. When the mining sector rallies, these micro-caps often move first and fastest.
Renewed attention is flowing toward smaller names with real projects and measurable progress. For investors who took profits from AI holdings, reallocating even a portion of those gains into gold explorers offers a way to stay exposed to potential upside while reducing downside risk.
One such example is Colibri Resources (TSXV: CBI | OTC: CRUCF), a focused junior gold explorer based in Mexico’s Caborca Gold Belt, one of North America’s most prolific gold-producing regions.
Colibri: A Quiet Player in a Proven Belt
Colibri Resources (TSXV: CBI | OTC: CRUCF) continues to advance quietly in Mexico’s Caborca Gold Belt, which hosts multiple producing mines, including Agnico Eagle’s La Herradura. To date, Colibri has drilled more than 12,000 metres and confirmed shallow oxide mineralization ideal for low-cost heap leaching. In November 2025, the company closed the first tranche of its oversubscribed private placement for approximately C$1.5 million, providing funds for new drilling at its Evelyn Project, located just 25 km south of La Herradura.
Colibri’s disciplined exploration, low market cap, and close proximity to established producers make it a noteworthy junior as capital rotates toward tangible assets. The Caborca Belt has produced millions of ounces of gold, and its infrastructure shortens the path from discovery to production — a major advantage over greenfield explorers.
Macro vs Micro: Hope vs Hedge
AI behemoths are trading at 40–60× forward earnings, priced for perfection. Meanwhile, gold producers and explorers remain undervalued despite record bullion prices and rising central bank demand. It’s a contest between hope and hedge — between intangible promise and tangible value.
For many investors, 2025 represents a return to balance. Portfolios built exclusively on hype lack ballast, and gold — whether in physical form or through equities — provides exactly that. You can’t have all rocket fuel and no anchor.
Final Thoughts
The AI rally gave investors a surge of adrenaline; gold offers stability. One thrives on imagination, the other on discipline. Together, they reflect the market’s current crossroad between innovation and introspection.
With the Bank of Canada and the Federal Reserve preparing for potential policy adjustments later in 2025, volatility is expected to rise. For now, as the AI sector cools, the humble yellow metal — and companies like Colibri Resources (TSXV: CBI | OTC: CRUCF) quietly executing in the background — are looking like the smarter, steadier trade.
Marc has been involved in the Stock Market Media Industry for the last +5 years. After obtaining a college degree in engineering in France, he moved to Canada, where he created Money,eh?, a personal finance website.
