News seems to be circulating quickly,about Assets like crypto, gold and silver these days than other assets.
The news circulating about gold is a mind-blowing one.
It's said that a gold deposit worth of $12trillion is sitting somewhere in Uganda and ready to be minned. Who would have seen that coming.
But at the same time, let's not forget about the Psyche asteroid gold which NASA noted is worth $10,000 Quadrillion. All these numbers are kinda big and seems like a fairytale to me. Could it be fake news or a publicity stunt to attract investors.
But if it's true, what does it mean for gold. We know how demand and supply works huh...
Any discovery to increase gold at this time means there would be more supply with less demand, which would logically not serve gold investors. The demand for gold isn't that high, the world is in an unstable financial state rn, with inflation here and there, many can only think of living and surviving the next day.
It should also be noted that the gold which is stated to be worth $12trillion also has not been minned yet. So a need to get minners would be the best way to go, if and only if the news is real.
The possibility of it being a bluff is 50/50, not that I I'm hating on this discovery but anyone can make things up these days and the Government in any country around the world are best at doing that. I would've believed it 100% if it was discovered by a independent company.
I hope it's true cause that will put the Ugandan economy in a better place if the gold is put to good use. But before it's minned, Ugandans will benefits from the minning process and create more job opportunity for its citizens.
The power play there now is that a China gold minning company named wagagai are already stationed in Uganda and are said to mine 5000 kilograms of gold a day before the year ends.
Mr Muyita said a Chinese-run firm, Wagagai, which picked its name from the highest peak of Mt Elgon, expects to mine and start refining at least 5,000 kilogrammes of gold a day in Busia by the close of this year
With $2.7 Trillion of dollar available, a massive power play is about to occur if care is not taken, U.S would/might not take this lightly as I believe China would benefit greatly from the gold than anyone.
China remains the biggest bilateral (country) lender to Uganda with her debt now amounting to 2.55 billion dollars followed by Japan and the United Kingdom.
But all these are just speculations and it has never yet been recorded that the gold has been minned but it seems Uganda are trying to attract small investors to mine the said gold while the government gets returns of around 15% in the minning process.
It's a two edged sword to say. Either the news is true or the said numbers is true but for now let's see what the future holds as the truth will be more clear with time
Let me know in the comment what you think all this means for Uganda, China and the U.s
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This is mind blowing, this earth is full with a lot more to be discovered that what we had already discovered since humans started to discover things, so I believe it is possible for such discoveries to be made even in countries/places least expected.
About the gold value decreasing according to the law of demand and supply, i really done think it would affect the value. Although I know most people are striving just to survive but there is money where there is money, and there are people who could keep collections after the gold has been mined, this only means attention would be diverted more to gold and demand in that area would increase almost to the rate of supply, as we all know that a lot of investors have a lot of money, wondering what next to do with it.
I hope it works like that, let’s not forget that Uganda is an African country, you know what that means….
Yes it's possible for discovery like that to be made at a least expected places but we also have to be realistic, the said amount is more than the total market cap of gold itself i.e Uganda has more than the gold available around the world so that's a big supply coming, twice of what's already available.
But it depends on how they manage the supply to balance things out, if things goes the other way round, gold's taking the hit.
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Well let’s keep a close eye on it, and see how things go from here
It's an alternative income source and nobody knows if it is true. I don't really think it will affect prices too much though.
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Yes it's an alternative source of income. We'll find out with time if it's true or not, they can't hide something like that as it's now trending among invedtors and minner willing to utilize the opportunity to their own advantage.
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