What would happen to our economy if...........?

Question

If the earth started getting pelted with chunks of real, pure gold in large quantities.....if it started raining gold?

Answer 1

I wish that would happen, then people would get off the idiotic notion that gold somehow has special intrinsic value, when it does not.

Anyway, gold would immediately become exactly as worthless as common rocks on the ground. There would be some kind of economic disruption because there are private and government entities that own gold as an asset, and these people would lose money as the asset becomes worthless.

The jewelry industry would collapse, but eventually adjust, since vanity isn't going away. Obviously the gold mining industry would collapse. That's not trivial -- it would certainly cause a stock market crash in Canada, where gold mining stocks make up an unusually large portion of business.

It would be a boon to certain industries that use gold as an industrial commodity, such as companies that make electronic components using gold.

Answer 2

Hip hop stars will look pretty cheap, walking around with heavy worthless chunks of 'bling bling' on their persons.

Seriously, no country has their currency pegged to the price of gold anymore. Gold reserves are used as a store of value, like many other liquid assets like US treasury bonds or foreign currency. The end of gold as a viable store of value will probably cause other store of value to rise dramatically in value.

Answer 3

Hmmmm.... gold miners would be out of a job, or doing a roaring business selling it, gold would become less valuable (Is it price elastic?) and I could quite easily imagine some corrupt leaders hoarding it while their people starved

Answer 4

gold would not be worth as much

the Mormons would refuse to let any church people pick any up cuz it would corrupt them

nice gold jewelry in the dollar store

what would change it is if people wouldn't spend money anywhere that wouldn't hire them to work there if they wanted to