What happens to the price of gold if 300 tons are dumped on the market?

[Ghepetto]

Let us say that the Nazi train in Poland is real, and it contains 300 tons of gold, and it is dumped.  How much would this effect the price of gold?

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[bryant.coleman]

I don't think that it will be having any long-lasting effect. Some 3,300 tonnes of gold are being mined annually, in addition to the thousands of tons which is recycled or traded. Perhaps, the gold price might remain depressed for a month or so. But it is not going to affect the prices in the long term. That said, I don't think that the Poles are going to dump all that gold in one go. Most likely, they are going to deposit it in the Forex reserves.

[jod_doj]

3300 tones every year? how can this not affect the price? thats strange how it still has such big value

[bryant.coleman]

3300 tones every year? how can this not affect the price? thats strange how it still has such big value

Right now, the supply-demand equilibrium is being maintained at the level of $1,080 - $1,150 per oz. If more than 3,300 tonnes of fresh gold appears on the market, then the price will go down. If there is a scarcity of supply, then the price will go up. But these effects will be temporary, unless a vary big amount (say 2,000 tonnes or 3,000 tonnes) is dumped all of a sudden.

[bimasena25]

I think gold values will drop dramatically

[Enjorlas]

The real thing to watch out for is if China and Russia start dumping all their gold that they have been buying.

[gentlemand]

It goes down, just like everything else.

http://uk.businessinsider.com/gold-price-flash-crash-caused-by-five-tonnes-of-chinese-bullion-2015-7

[bitcoinmasterlord]

I think gold values will drop dramatically

I don't think the price of gold will go down dramatically just because of additional 300 tons in the market. As of the data available in the internet, in recent years approximately 2,497 tonnes of gold has been mined each year. So additional 300 tons will keep gold price just for couple of months down only but it can't bring down the gold price dramatically.

[Will.i.am Shakespeare]

I'm waiting for a huge asteroid to crash to earth that is full of gold. Now that would effect the price  .

I also think that person finding the train is just a hoaxer.

[HarHarHar9965]

I'm waiting for a huge asteroid to crash to earth that is full of gold. Now that would effect the price  .

I also think that person finding the train is just a hoaxer.

hey man, I best advise you to buy a bitcoin and throw it into the cold storage, so best of luck with that whole gold asteroid crashing into earth fantasy, I'd rather wish that something like what happened in the movie fight club takes place, everybody who has ever taken a debt is declared debt free due to the loss of significant details and data. yeah, a reset on the economy system is what I pray for.

[bryant.coleman]

The real thing to watch out for is if China and Russia start dumping all their gold that they have been buying.

It is not going to happen anytime soon. Both Russia and China are looking to replace the United States treasury bonds in their Forex reserve stockpiles with gold bullion bars. China has been doing this for almost 10 years now, and Russia has joined them a few years back. They will continue dumping the bonds for the foreseeable future.

[mordekaiser]

If the supply is overwhelming the demand, its eventually to go down?

And as for the china`s comment, its about time they sell off u.s debt lol. There was a zerohedge article on china selling of assests in the billions.

http://www.zerohedge.com/news/2015-08-27/its-official-china-confirms-it-has-begun-liquidating-treasuries-warns-washington

[markj113]

If the supply is overwhelming the demand, its eventually to go down?

And as for the china`s comment, its about time they sell off u.s debt lol. There was a zerohedge article on china selling of assests in the billions.

http://www.zerohedge.com/news/2015-08-27/its-official-china-confirms-it-has-begun-liquidating-treasuries-warns-washington

But at the moment demand is overwhelming supply (real physical metal not paper promises backed by nothing)

[Nautiluss]

if 300 tons of gold were into the market, wouldnt it not change the price.

the stock market is easily manipulated, but it has to be based on a known stock last time I checked esp insider deals etc.

[xhomerx10]

 Potentially nothing at all as the gold price is already manipulated by the power brokers.

[ashour]

Let us say that the Nazi train in Poland is real, and it contains 300 tons of gold, and it is dumped.  How much would this effect the price of gold?

I don't think that all of that gold would be instantly be dumped at once. It would probably affect the price for a couple months since it has a huge volume. But I think that Poland will actually rather store that gold than sell it.

[botany]

 Potentially nothing at all as the gold price is already manipulated by the power brokers.

That is a telling image.
Crude, gold..... the greedy bankers have left no commodity untouched.
Very soon, bitcoin will be in their grasp too.

[Hugroll]

if 300tonnes are dumped, the supply increases, the people with the increased supply would sell at a bit lower price in order to sell faster. Doing that decreases the market price slightly.

[qiwoman2]

When gold is dumped like that, the rest start panic selling and the whales start buying up even more dirt cheap than what they dumped it at. This has always happened in all markets, not just gold and if peeps are stupid enough to panic sell or sell at a loss then the whales are always laughing. 

[bryant.coleman]

if 300tonnes are dumped, the supply increases, the people with the increased supply would sell at a bit lower price in order to sell faster. Doing that decreases the market price slightly.

300 tonnes is not enough to create such a situation in the long term. Some 600 tonnes of gold are traded legally every month. Many times that amount is traded in the informal sector. If 300 tonnes of gold is dumped all of a sudden, then the price will remain low for a month or so, but the rates will recover once the institutional investors start mopping up the cheap gold.