The end of GOLD as a "Reserve of Value"?

By toofasteddie | The cryptorunner | 28 Jun 2022


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...

 

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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?

@toofasteddie

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toofasteddie
toofasteddie

Dad, Engineer, Runner and Crypto-trader


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