As we have known a few days ago, UGANDA seems to have discovered 31 million tons of material containing gold.
It is estimated that the amount of gold that could be extracted from this material is around 320,000 tons...
Can you imagine what this means?
I will give you an easy idea, throughout the history of mankind the extracted gold is quantified at 190,000 tons.
If you have read correctly, if what the Ugandan government says is correct, we would be talking about putting into circulation 1.7 times more Gold than exists up to now...
What will happen to the price of gold? I think that surely what happens to gold is what happens to any asset or crypto when its supply increases, that is, the price decreases... if this were true and there was free trade in it without centralizing mechanisms, which I think they would surely put the governments of all countries are underway, the drop in price would already be a fact to be contemplated in the coming months or years...
To mitigate a little the possible FUD that gold investors could generate from this news, it is clear that we are talking about an estimated maximum gold to be extracted/refined in a period of time not yet quantified... it could be 5, 10, 50 years... who knows? but it does not seem the best of decisions to invest in gold today if this news becomes a reality in fact.
I am also presented with other scenarios regarding BITCOIN and how it could benefit due to the poor performance that gold could generate as a "Reserve of Value" but it is clear that BTC still has a lot to prove in that field in this regard too although, perhaps, some skeptics will begin to see it that way from now on.
Be that as it may, gold investors have had bad news this week and I wonder what investment alternatives they are considering, perhaps other more usable and scarce precious metals (Rhodium, platinum, Iridium...), perhaps BITCOIN...
We are facing a discovery that can totally change the situation with respect to world economic supremacy.
What is your opinion?
Do you see the end of gold as a "Store of value" if the news becomes reality?
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No matter the price, gold will retain most of it's uses including store of value for the forseable future. We'll see in about 5 years how true that statement will be :)
That was always the question.
One thing that few are talking about is the advancement of underwater drones. There estimation of gold under the ocean is $500 trillion. Can you imagine if a portion of that is accessed based upon the new technology?
It is important to remember that aluminum use to be the choice of royalty. Although the oxide was plentiful, pure aluminum was not due to the inability to separate it out. Once that was done, the end result is aluminum soda and beer cans on the side of the road.
Finally, when things crash, like they did in March-April 2020, where did everyone run? The USD.
Something to keep in mind.
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I hope that one day they will realize that there is a better alternative to FIAT money
HIVE ;)
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So we will be drinking Coke from gold cans in the future:)... Nice...
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I would need to research more and see how true those numbers really are. Could be totally speculation, amount of time to extract it.
Who owns rights to the claim, country, company etc.
Depending on the above would give me much better clarity if any actions need to be taken.
I see it as a benefit to Crypto as gold will become deflationary now and lose value quickly if it's being mined out fast and people would actully move to crypto as a store of value in particular bitcoin.
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I agree, let's see how it evolves. For the moment it's just a news but without evaluating the cost of extraction is hard to estimate about the impact
it is there or not .... but does anyone make a decent estimate calculation of how much you have to spend to dig this gold out of there... it is lot times 50 % all this what you find out there ;)) ... so to me looks weak news just to make Gold market week and not let see how fuck up is Dollar and Euro :))) Good luck what this news :)))
agree
The most sought resources will be clean potable water and food. You can not eat gold, it has a lot of usecases and is important in many industries.
I am curious where this goes.
As far as I know HIVE has no limit in terms of tokens, will this be a problem?
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Could be
There are many uses for Gold other than being a store of value. If anything; I'm happy to hear about this new discovery. We will eventually have a cheaper material for the Gold needs. Fiat is getting devalued quite fast too. Aside from the FUD and market manipulations, I think Gold will be mostly fine.
!PIZZA
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So is Uganda the richest country in the world now?
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No idea, I guess they will sell their gold before extracting it because the cost of extraction is enormous
Most certainly.
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I think I will hold my gold, I don't trust this story so far.
It will be watched for sure to see how it progresses.
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But I think pricing will not effect the use of gold. It will still be the symbol of wealth and pride.
I think they will be careful with bringing the gold to the market and nobody will notice that the supply changed...
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