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Gold is the worst example because the price of gold is almost 100% based on its scarcity. Doubling the supply of gold would just cause the price to roughly halv
by kibwen 2y ago
Gold is the worst example because the price of gold is almost 100% based on its scarcity. Doubling the supply of gold would just cause the price to roughly halve. Hilariously, if you actually had the capability to inundate the world with gold, you'd find it much easier and still extremely profitable to extort the people who own gold to pay you not do so.
- DennisP 2y agoYou'd make a lot of money on the way to doubling the world's supply. 3000 tons annually just doubles how much we mine, not how much we have; that's more like 190,000 tons. And even if you doubled the total supply instantly, you'd now own half the current value of the world's gold, which would be about $6 trillion. And of course gold has all sorts of really useful properties, so long term, it'd be worthwhile to make it abundant and cheap.
- kragen 2y ago> Doubling the supply of gold would just cause the price to roughly halve that isn't the way price elasticity on the demand curve works. that isn't the way any of this works