The Golden Asteroid: How Mining Gold Asteroid Can Impact Gold’s Store of Value
For quite some time, there have been huge discussions regarding this golden asteroid and people are having different perspectives regarding this. Some are hoping that there are huge chances of getting rich if the scientists will be able to bring the metal from that asteroid. However, this might also reduce the price of gold because another major reason behind being a precipice metal is its scarcity. If there will be enough supply of gold then it will ultimately reduce the price of the metal.
Impact of Golden asteroid on gold’s store of value
Across the world, Gold is considered as a store of value since its price does not get affected that often with the other asset class because of low co-relativity. It also acts as a hedge against inflation for those who have invested their money in gold. Now comes the Golden asteroid which is also known as Psyche 16. It is between the orbit of Mars and Jupiter and containing some highly precious metals. Several reports claim that NASA is eyeing upon it and might soon begin its operations in the coming years.
One of the biggest concerns among people in the industry is what will be its impact on the price of Gold. As mentioned above, one of the biggest reasons behind gold being a precious metal is its scarcity. If the operations on this golden asteroid will be successful then it will be possible to mine gold there. This will ultimately increase the supply of gold across the world and whenever there is an increase in supply, the price tends to decline. Within a short period of time, gold will also become a normal one just like any other metal and it will cause a major impact on gold’s store of value.
Influential personalities talking about this asteroid
Even though people have been talking about this golden asteroid for a very long time, there has been a spike in its discussions recently. This is due to the recent mention of the golden asteroid by Winklevoss twins, Cameron and Tyler in a recent interview. They have talked about the plans of Elon Musk, an American entrepreneur who is holding quite an influential position across the whole wide world. Winklevoss twins have mentioned that the price of gold will fall dramatically as Elon Musk is planning to mine gold and other precious metals from the golden asteroid.
According to them, the major problem with gold is that its supply isn’t fixed and because of this, it is not easy to rely upon it easily. If the plans to mine gold from the asteroids will be successful then the supply of gold will increase to a very great extent. This increase in supply will decrease the value of this precious metal and it will ultimately become worthless. Both the twins believe that by mining gold from this asteroid, Elon Musk is going to destroy gold. They have also compared this with Bitcoin by saying that the supply of Bitcoin is fixed and it will never increase than 21 million. Hence, Bitcoin is a better option as compared to gold and the twins urged people to consider Bitcoin rather than focusing on gold because it is soon going to become worthless.
Conclusion
People across the world seem to be quite excited about the golden asteroid and many of them believe that if gold is mined from the asteroid, they will become rich. Unfortunately, this is not the case as the supply of gold will be increased extensively and it will not remain precious metal anymore. Hence, it is going to have a direct effect on its price and the people who have been relying upon gold since forever are simply going to be in great trouble. This is quite clear that golden asteroid is going to have a severe impact on gold’s store of value.