Space: the final gold rush frontier

IMG Auteur
 
Published : May 03rd, 2012
428 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Market Analysis

 

 

 

 

Last week the company Planetary Resources held a press conference to discuss whether the production of precious metals on Near Earth Asteroids might soon become a reality.

Analysts, commodity producers and metals traders agree that Earth's precious metal reserves are steadily decreasing. In South Africa, gold is often extracted at depths of up to 6,000 metres, which is leading to big increases in production costs. According to recent analysis from the World Gold Council – an umbrella organisation representing miners, traders, and gold exporters – the volume of gold extracted throughout human history would only fill three and a half Olympic swimming pools, or 8,000 cubic metres.

Should Planetary Resources' plans become reality at some point in the future – a big “if” – they would of course drastically increase metal supply here on Earth. Experts are convinced that gold, silver and platinum production on Near Earth Objects can become a reality. The decisive question is how much such an ambitious project might cost. According to calculations made by staff members of the Collaborative Modelling for Parametric Assessment of Space Systems (COMPASS) at NASA’s Glenn Research Center in Cleveland, Ohio, producing metals on Near Earth Asteroids would have an approximate cost of $2.6 billion. During last Tuesday's press conference Dr Peter Diamandis, co-founder and vice-president of Planetary Resources, stated that those metals can be found in almost unlimited quantities in space. Even if a large amount of these precious metals produced on asteroids would most probably not find their way back to Earth, the ideatwinned with the right equipment and technological advancescould trigger space’s first gold rush.

An increasing number of successful entrepreneurs and investors are backing the project. According to Planetary Resources, cost-effective production will mainly depend on the water resources found on those asteroids. Minerals extracted through “ exploration telescopeswould be transported to Earth by space ships powered by energy from hydrogen. Though ambitious and somewhat outlandish at the moment, the company's founders defend their plans, arguing that throughout human history great ideas have mostly been met with rejection or great scepticism. This was the case with the first trip to the Moon, and with plans about offering pleasure trips into space. But today both these ideas have become a reality (thought admittedly the latter is only available to the very wealthy).

Should these production plans become reality and so flood the markets with metals from space, this would result in a drop in metal prices. But of course, we are still a long way from this particular (space) ship sailing.

 

 

Data and Statistics for these countries : South Africa | All
Gold and Silver Prices for these countries : South Africa | All
<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Racism-O-Rama
07:54dennyc1
Ah, yes, black welfare recipients receiving our hard earned and easily spent tax dollars and providing us nothing save their lives for our investme...
Racism-O-Rama
15 JanDoom1
It's not just the English that is considered RACIST, it's also mathematics, and a wide range of other things: http://professorconfess.blogspot...
The World’s Most – And Least – Miserable Countries in 2016
15 JanWatchdoctor
Happiness is not determined by financial situations, though it does of course negatively impact on our ambitions. Wether or not you are happy, rega...
Number One Concern of US Citizens is Terrorism
14 JanThe Recusant
The chances of dying in a terrorist attack in the US (with 9/11 statistics included) is around 1 in a million per year. Compared to dying from non-...
Mad As Hell
14 JanThe Recusant0
j T.: Yes, the Democrats putting up HRC as their candidate in a populist electoral period was pure stupidity. And both parties allowing Obamacare t...
2018: The Wrong Lesson on Gold Investing
14 JanThe Recusant
As you say, it's only what the central banks do that matters. Gold and its little brother silver are the only true measures of fiat currencies and ...
Trump's Ignorance
13 JanRichard J.1
At this point isnt it pretty obvious it’s got to all blow....as much as Hugo is dead on do we really want the US to survive as caretaker of world m...
One-year score card for Trump
13 JanS W.
Everything else aside, Donald Trump has a very small mouth, combined with the weirdest lip action and pouting of any person I have ever seen.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Take advantage of rising gold stocks
  • Subscribe to our weekly mining market briefing.
  • Receive our research reports on junior mining companies
    with the strongest potential
  • Free service, your email is safe
  • Limited offer, register now !
Go to website.