Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Fun on Friday: An Asteroid Filled With Fool’s Gold

  by    0   1

Have you heard about the “gold” asteroid?

You probably have. It’s been all over the news. Apparently, NASA is planning a mission to a Massachusetts-size lump of rock named “16 Psyche” located in the asteroid belt between Mars and Jupiter.

There’s been widespread reporting that this mission could pave the way for asteroid mining. And that’s led to speculation that it could make us all rich!

This is dumb.

A headline in The Sun screamed, “MIDAS ROCK Giant golden asteroid contains enough heavy metals to make everyone on Earth a billionaire – and Nasa is heading there in 2022.”

On a side-note, whenever I hear the world “Midas,” I think muffler. Muffler rock. That doesn’t make much sense.

Anyway, this lump of space rock is going to turn us all rich and probably also foster world peace. According to The Sun, the metals in this single asteroid are worth  £8,000 quadrillion. That’s about $10,038 quadrillion. Give or take a buck or two.

This is amazingly good news.

Except that it’s not.

All this talk about getting rich off space gold reveals a horrifying economic ignorance. And also journalistic ineptitude.

I know. I shouldn’t expect much from The Sun. But the problem is that so many other media outlets just took the headline and ran with it. Now we have all these people running around thinking their problems are solved because space gold is going to make the world rich. It’s worse than these silly universal basic income schemes.

Now I’m not a rocket scientist. But I am a dedicated journalist. So, I’m going to pop some of these myths like a Fed-induced asset bubble.

In the first place, contrary to what you might have read, we’re not talking about a “gold asteroid.” In fact, scientists aren’t altogether sure what it’s made of. It’s all wild speculation — like the stock market. It appears that it’s about 90% iron. There is also likely a significant amount of nickel. So, no, there isn’t solid gold floating in space. Sorry.

Nevertheless, this rock is huge. That means even if it contains only a small percentage of gold, we’re still talking a lot of yellow metal. So, we’re all rich, right.

Wrong.

First off, nobody seems to be considering how difficult it would be to mine an asteroid floating in space. I’m going to guess it’s probably not gonna be cheap. Or easy.

In the second place, we have to consider basic economics. I know. We don’t do that most of the time these days. The wild faith in the proposed policies of AOC makes that clear.

The fact is that even if we could haul a bunch of gold to earth from this asteroid, we couldn’t just hand it out and make everybody rich. It would just tank the price of gold. It’s as likely to make everybody in the world a billionaire as the recent minimum wage increase in Venezuela is going to make Venezuelans rich. Basically, it would be just like firing up the printing presses, running off $100 bills and handing them out — you know — like the Fed. We call this inflation. And it doesn’t make everybody rich. Governments have been doing it for decades.  I ain’t rich.

So, I’m sorry. If you were planning your future based on your gold asteroid windfall, just stop. It’s fool’s gold.

Now — there is a way to get gold and build your wealth over time. To learn more about that, don’t call NASA. Call a SchiffGold precious metals specialist at 1-888-GOLD-160.

Fun on Friday is a weekly SchiffGold feature. We dig up some of the off-the-wall and off-beat stories relating to precious metals and share them with you – with tongue firmly planted in cheek. Click here to read other posts in this series.


Related Posts

Fun on Friday: 2020 Olympic Athlete Will Compete for…E-Waste?

So athletes in the 2020 Olympics are going to be competing for junk. No joke. The medals for the Tokyo games will be made entirely out of recycled e-waste.

READ MORE →

Fun on Friday: Let the Politicians Fight It Out in the Cage

I’ve got an idea. It’s not really original, but I think it’s fantastic and worth considering here as we get close to the Fourth of July holiday. How about if we build a big cage in Washington D.C. and let the politicians just fight it out MMA-style? I mean, that’s pretty much the level most […]

READ MORE →

Fun on Friday: Hard Rock Cafe Goes for Gold

From time to time, I write about gold-covered food. Why? Because it’s a thing – a weird thing. It involves gold – which is what we do here. It comes up a lot in my daily Google searches for gold news. And did I mention I find it kind of weird? Really, I don’t understand […]

READ MORE →

Fun on Friday: You Snooze, You Lose

Well, you missed out. You could have been $100,000 richer. But you didn’t plunk down $25 for a map. And you’re probably not in Canada. Too bad. As my dad used to say, “When you snooze, you lose.” But a few people did cash in on a treasure hunt up in the Great White North. […]

READ MORE →

Fun on Friday: Finders Weepers; Losers Keepers?

And they say crime doesn’t pay. Remember the South Korean custodian who found gold bars in the garbage can at the  Incheon International Airport? I wrote about it a little over a year ago. The real travesty is that the janitor who found the gold probably won’t get a dime. It was a sad case […]

READ MORE →

About The Author

Michael Maharrey is the managing editor of the SchiffGold blog, and the host of the Friday Gold Wrap Podcast and It's Your Dime interview series.
View all posts by

Comments are closed.

Call Now