Posted on 06/26/2019 8:02:12 AM PDT by bananaman22
Whether it was the Big Bang, Midas or God himself, we don’t really need to unlock the mystery of the origins of gold when we’ve already identified an asteroid worth $700 quintillion in precious heavy metals.
If anything launches this metals mining space race, it will be this asteroid--Psyche 16, taking up residence between Mars and Jupiter and carrying around enough heavy metals to net every single person on the planet close to a trillion dollars.
The massive quantities of gold, iron and nickel contained in this asteroid are mind-blowing. The discovery has been made. Now, it’s a question of proving it up.
NASA plans to do just that, beginning in 2022.
(Excerpt) Read more at oilprice.com ...
If a rare resource becomes common, its value drops accordingly...
There was a time Aluminium was considered precious, they they were able to industrialize its production...
No. If everyone had a ton of gold it would be worth very little.
Great Twilight Zone episode. Crooks hijack a gold shipment, go into suspended animation to wait a century for the searches to cease. Awake to find gold is worthless.
Nice to see some reality injected into an Oilprice article.
Let’s move there and fret about the price of water.
That concept is so simple to understand that even Gilligan’s Island did an episode on what happens with an over abundance of gold. That makes the author less educated educated in economics than the writers of a 60’s sitcom and the kids that watched it.
Time to queue up the Twilight Zone episode where the guys stole a bunch of gold, put themselves into suspended animation, only to wake up years later and discover that science had figured out how to synthesize it.
“The Golden Asteroid That Could Make Everyone On Earth A Billionaire”
...and, a Big Mac would cost $78,000.
Yup. The value of the metals would go down. A lot. However, many of the metals have intrinsic value for industrial uses, so it would still be worth a lot and could lead to an economic boom.
I remember reading that when shiploads of Aztec gold hit Spain, the price of everything suddenly went up, starting with the port of call.
Err... the author surely means to say the asteroid has the potential to wipe out the savings of anyone who is heavily invested in precious metals. On the plus side we can all have a better life from the technologies that can be accessed by a plentiful supply of metals that are currently too rare to be used for those purposes.
Can the writer of that headline really be that obtuse? Scary.
Well, at least we could all get lots of bling bling to wear, even if it would be worthless.
If this comes to reality, everyone who short-sell gold will be rich. Cuz the prices are going to end up in the crapper.
Yeah basically this could ruin the gold market.
Demand is not always static as the supply of an item increases. In your example of a rare comic book, it would because the comic book has limited utility. You can only enjoy so many copies of the same rare comic book, after all. However, gold has so many uses not practical now because of its limited supply, if the supply of gold were greater, its utility would expand balancing the demand side of the equation. Oil and aluminum are two examples of commodities which have maintained their value because of their utility - the article is from the Oil Price Journal - despite exponential increases in their historical supply.
We could all have gold teeth.
Without a picture this is fake news
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.