Thoughts on this Billionaire closer to mining the moon for trillions of dollars in riches ? Would this be like "QE for precious metals", thus making them less scarce and thus (potentially) no longer suitable as a store of value? Let's also consider the possibility that it isn't limited to one billionaire being able to mine the planets for riches. What if technology allows several billionaires to do so? Would that be a "game changer" for what we currently think of as sound money?RW response:
Mining gold on the moon and bringing it back to earth would not be exactly like Quantitative Easing. With QE, the Fed generally directs funds to the banking sector, causing the boom-bust cycle. Moon gold would be put into the gold market by the billionaire miners. It, thus, would not benefit banks directly but the sectors where the moon gold miners would spend the money that they would get from selling the gold.
This, of course, would put significant downward pressure on gold prices if there was enough gold mined and put on the gold market. That said, as the article points out, the project would require, at a minimum a vehilce that would make a soft landing on the moon, travel 500 meters across its surface, and transmit high-definition video and images back to Earth.
In addition, it would have to mine the gold and ship it back to earth. This does not strike me as a project that will be finished by the end of this week.
However, if the moon does prove to be a harsh mistress (apologies to Robert Heinlein), and dumps tons of gold on us earthlings, it is possible that markets would move away from gold and adopt something else as a general medium of exchange.