Centives has previously covered Hugo Chavez’s ‘problem’ of having too much gold. It turns out that he should be far more worried about the future value of his gold stockpile. The Baseline Scenario took a look at what the price of gold will be in the year 2060. The prediction? It will completely crash to the point where it’s close to worthless as a system of currency. The reasoning includes:

• Commodity based money systems have consistently, throughout history, collapsed.
• This is because technology inevitably makes the production of commodities too cheap.
• Gold is likely to be a very common element in Space. A “moderately sized” asteroid named Eros was estimated to be worth over $20 trillion of precious metals in 1999.
• Everyday humanity comes closer to being able to mine minerals from space. Launch costs alone have dropped from $10,000/kg to $500/kg.

To read some of the challenges involved in being able to mine precious metals from space, as well as some of the solutions that individuals have proposed click here.

Source: The Baseline Scenario

Via: Jake Kennon