<p>Let's say in a few decades we can find a new technology to produce gold at low cost which will cause the price of gold to be as low as other metals.</p>

<p>My question is that how would this have an impact on the economy of countries which hold significant amount of golds? And how would this impact on the economy of other countries?</p>

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2015-10-12T12:44:13.240Z
The cost of supplying gold has practically nothing to do with the price of gold
410 gone
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2015-10-12T13:08:14.350Z
@EnergyNumbers I don't undrestand, If you can produce tons of gold everyday it means that it will get pretty cheap one day.
Saber
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2015-10-12T13:09:40.253Z
One could argue that diamonds are similar to gold (though diamonds were never used to back up currency). In the 1950s the Soviets opened a huge  diamond mine which had a significant impact on diamonds. The price did not collapse. You can read about this here: http://edwardjayepstein.com/diamond/chap17.htm
Giskard
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2015-10-12T13:51:52.760Z
If the gold market is competitive, the technology would lead to a higher supply of gold probably which would reduce the price of gold and hurt countries that hold significant amounts of gold. However I'm not totally sure that it is a competitive market. If it is essentially oligopolistic, like the diamond market is, then nothing should happen.
BB King
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2015-10-12T15:29:36.103Z
@denesp I believe your comment should be an answer instead ;0
FooBar
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2015-10-12T15:57:54.530Z
@FooBar I only pointed out that the value of gold is not intrinsic. I hope someone will do a much better work of explaining where the non-intrinsic value comes from.
Giskard
<currency><commodities>
What is the impact of a technology to produce gold at low cost?
Saber
# What is the impact of a technology to produce gold at low cost?

(Asked by: username_0 on 2015-10-12)

Let's say in a few decades we can find a new technology to produce gold at low cost which will cause the price of gold to be as low as other metals.

My question is that how would this have an impact on the economy of countries which hold significant amount of golds? And how would this impact on the economy of other countries?

**Tags:** currency, commodities
> **Comments:**
> **username_1**: The cost of supplying gold has practically nothing to do with the price of gold  
> **username_0**: @EnergyNumbers I don't undrestand, If you can produce tons of gold everyday it means that it will get pretty cheap one day.  
> **username_2**: One could argue that diamonds are similar to gold (though diamonds were never used to back up currency). In the 1950s the Soviets opened a huge  diamond mine which had a significant impact on diamonds. The price did not collapse. You can read about this here: http://edwardjayepstein.com/diamond/chap17.htm  
> **username_3**: If the gold market is competitive, the technology would lead to a higher supply of gold probably which would reduce the price of gold and hurt countries that hold significant amounts of gold. However I'm not totally sure that it is a competitive market. If it is essentially oligopolistic, like the diamond market is, then nothing should happen.  
> **username_4**: @denesp I believe your comment should be an answer instead ;0  
> **username_2**: @FooBar I only pointed out that the value of gold is not intrinsic. I hope someone will do a much better work of explaining where the non-intrinsic value comes from.  

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