Is space mining creating market differences and on-earth-inflation?

[Bialke]

I have two scenarios I want to talk about. One is fictiion, but possible. The second is possible and in the discussion of current space agancys and companys. Source: https://www.esa.int/Enabling_Support/Preparing_for_the_Future/Space_for_Earth/Energy/Helium-3_mining_on_the_lunar_surface

Example #1 - Fiction - Planet X with huge amounts of gold

Example #2 - Real - Earth Moon with huge amounts of Helium 3 and 4

What if, companys or countrys can built and run factorys on both, Planet X and Earth Moon. And we can mine gold and Helium 3 and 4 in huge amounts additional to the earth sources. What will it do with the earth market for gold and energy (Helum 3 and 4)? Are there big differences of the price of f.E. Helium  3 on the Moon-market and the earth market? And aditional: Are there big differences of the price of Gold on the Planet X-market and the earth market? Or will the earth market crash?

How is it taxed?

[1714480944]

1714480944

[1714480944]

1714480944

[1714480944]

1714480944

[Argoo]

Of course, if humanity begins to explore the more distant corners of our universe and supply rare metals and other chemical elements to Earth in large quantities, then this will affect the price of currently existing value standards, such as gold and silver. But I don't think it's worth worrying too much about it. Almost every year we discover new chemical elements with more complex structures and weights. Therefore, there will always be enough rare elements that can serve as a measure of value for us.

If our planet is supplied with the raw materials we need from outer space, people will only benefit from this. In any case, this will not affect the increase in inflation.

[sesterceshop]

In theory, they could impact the markets for these precious resources on Earth. The supply of these elements would likely increase, which could potentially lead to lower prices unless the demand also rises significantly.

As for taxation, that's a complex issue. It would depend on international agreements, the legal framework established for space mining, and the involvement of various countries and companies. Taxation on space resources would be an evolving field, and governments would need to establish clear guidelines to ensure fair and equitable distribution of benefits. It's an exciting prospect to consider how space exploration might reshape our economic landscape.

[pinggoki]

It will definitely create a difference in the market for a lot of precious metals and resources because we're not limited to our planet to mine these minerals. I don't have much knowledge about mining and helium or gold market but the one thing that I'm sure of is when there's an abundance to a material and there's a lot of demand for it, the price will definitely go down but that's not the absolute result if space mining becomes a thing, take note that we need different sellers/miners in the market so there's competition and people have a choice which one they should buy but if space mining is monopolized or cornered by one company/country then expect no price changes in those minerals.

[Yamane_Keto]

The basic rule says that no comparison should be made between two completely similar commodities. If the gold found outside the ground is the same purity as the gold found on the ground, then it will certainly have the same value and will vary according to the purity and the percentage of impurities present. However, I believe that if large quantities of gold are found, its price will decrease and this may affect metal prices. Other industries may use gold for its high conductivity and efficiency.

If Helium-3 (He3) is found in large quantities and safer nuclear fuels are designed, oil and gas prices will be greatly affected as electricity can be used in more sectors.

[Hispo]

In my opinion, the whole concept of space mining, asteroid mining and similar extraterrestrial source gathering are supposed to give continuity to the current capitalist system most of the countries partake in, in order to sustain itself it is important to have access to new sources of valuable assets and thrus the value of those assets is supposed to be transfered to Earth, otherwise it would not make sense to exploit resources if they are not intended to feed and enlarge the market we already have.

Granted, in the far future colonies on the Moon and Mars may have their own economics, but they will likely be dependent on Earth's.

Also, space mining is something very far away, neither of us is likely to see it in our life time, unfortunately.

[avikz]

What is fiction today, might become a reality tomorrow. Space X has already created a rocket that can be reused over and over again which may pave the way for commercial mining in other planets in future. However, any company or country mining from other planet will not flood the gold or energy market be because it will destroy the price with over supply and make the mining company unprofitable.

So even if energy and gold are found in outer space which can be mined, we commoners are not going to see any change in price.

[Findingnemo]

Example #1 - Fiction - Planet X with huge amounts of gold

Example #2 - Real - Earth Moon with huge amounts of Helium 3 and 4

How is it taxed?

In both scenarios, the supply will be increased but the demand is going to be the same unless we are going to trade with other species apart from humans But for now, let's keep it realistic, the value of gold and helium will fall nothing else.

Taxation depends on where the mined gold is sold to.

Space/asteroid mining is still a speculative idea so we never know when it will be possible and also there is no necessary that the mined gold from outer space will be cheaper if we take the infrastructure, transportation and etc. into the account with the value of gold.

[icalical]

Are there big differences of the price of f.E. Helium  3 on the Moon-market and the earth market? And aditional: Are there big differences of the price of Gold on the Planet X-market and the earth market?

Logically yes, because there will be additional cost for transporting those Helium and Gold, and the cost will be significantly higher compared to transporting gold on the earth. Considering those transportation cost, I don't think any company will do such mining on space except the Gold / Helium supply on earth is very low and the demand is very high, thus the price is of Gold and Helium is sky rocketing, only then mining on space will be viewed as profitable.

[hugeblack]

Sometimes the emergence of a new, more efficient alternative does not mean canceling the old product, but it will be less concerned according to the price. We have examples of this such as the oil revolution, the discovery of oil fields and its impact on coal mines^[1], and Salar de Atacama^[2], which was thriving in the past and suddenly everything stopped.

Therefore, if a planet full of gold is discovered, there will be a comparison between the cost of extracting that gold to deliver it to planet Earth and the price of gold on planet Earth. If the price is lower, mining on Earth will gradually stop, and vice versa.

These things are not black and white, but they differ according to each case and every situation.

[1] https://yearbook.enerdata.net/coal-lignite/coal-production-data.html
[2] https://en.wikipedia.org/wiki/Salar_de_Atacama

[Peanutswar]

Your idea is really out of this world, and this space mining costs more than you imagine, also they must need to study if the number of supply with this is enough to the number of money they will spend if its not worthy tho no need to support this project that's all but if it is this will become a huge project that many people will recognize and the possibility of getting taxes is zero sure the government or the project who manage itself will secure this treasure created for different offers and services to the community. But at the end its quite far from reality.

[Latviand]

I believe that this space mining thing is going to be a race and the first ones will definitely make a lot of money because they will not lower the prices, the worse thing that they could do is probably increase the price since they have a monopoly on space mining unless countries are starting a space race for space mining right now then we would expect a monopoly otherwise.

Also, space mining is something very far away, neither of us is likely to see it in our life time, unfortunately.

I beg to differ with this article about OSIRIS-Rex landing a rocket on an asteroid to collect samples. If that becomes successful that means that mining is a possibility. I would agree with you that we might not see it in our lifetime but I do believe that the resources in those asteroids is lucrative enough for countries or companies to jumpstart a project to mine these asteroids because the first ones to do it will definitely monopolize it.

This YouTube video from Kurzgezagt can be a big help to further your understanding of the basics and where we are right now in space mining.

Code:

https://youtu.be/y8XvQNt26KI?si=akOsi9Gkrm-uOaTN

[tjtonmoy]

What if, companys or countrys can built and run factorys on both, Planet X and Earth Moon. And we can mine gold and Helium 3 and 4 in huge amounts additional to the earth sources. What will it do with the earth market for gold and energy (Helum 3 and 4)? Are there big differences of the price of f.E. Helium  3 on the Moon-market and the earth market? And aditional: Are there big differences of the price of Gold on the Planet X-market and the earth market? Or will the earth market crash?

There could be 2 scenarios IMO. One is good and another is bad on how you look at it. Price is determined by demand and supply. In scenario 1, if they are able to mine and take it back to earth, then the supply will increase, thus decreasing the value. Good for consumers and bad for business people. I don't know how the market will react to this but those who do the mining could control the supply in order to keep the value up. And if the supply increases, what would happen to the price of existing ones? This is complicated until it happens.

In scenario 2, it will take more resources and money to mine outside Earth and take it back to Earth again. For the increasing investment to gain those gold or Helum 3&4 the price may skyrocket(pun intended LOL). This could affect the existing value too. As I have less knowledge about this market so I can't say much but this was my assumption.

[el kaka22]

It is not only possible but it is going to happen, the only issue is that we need time for that. I am not entirely sure if space travel will be that easy, like we do not know if we are going to end up in a starfield world or not, but I can say that it is definitely going to be something to care about on the long term.

Looking at the space travel we have right now and how much we care about it at the time, I can say that it may not end up being that great, and I think it is going to end up being a bit different. I know that it may take some time, but at the end of the day it is going to happen one way or another, that is going to be the most important thing and we should be happy about it without a doubt. Just wait for it.

[Fortify]

I have two scenarios I want to talk about. One is fictiion, but possible. The second is possible and in the discussion of current space agancys and companys. Source: https://www.esa.int/Enabling_Support/Preparing_for_the_Future/Space_for_Earth/Energy/Helium-3_mining_on_the_lunar_surface

Example #1 - Fiction - Planet X with huge amounts of gold

Example #2 - Real - Earth Moon with huge amounts of Helium 3 and 4

What if, companys or countrys can built and run factorys on both, Planet X and Earth Moon. And we can mine gold and Helium 3 and 4 in huge amounts additional to the earth sources. What will it do with the earth market for gold and energy (Helum 3 and 4)? Are there big differences of the price of f.E. Helium  3 on the Moon-market and the earth market? And aditional: Are there big differences of the price of Gold on the Planet X-market and the earth market? Or will the earth market crash?

How is it taxed?

In the short term, space mining is unlikely to have any impact on metal or precious resources. There are lots of sources far below the ocean surface that are likely to be more easily extractable than trying to reach out into space. It'll probably be many decades before a feasible idea is even attempted, which might also be liable to government intervention. Unless you were able to find an asteroid made of something like gold, that could be mined in a special way, then the complexities are not even worth bothering to investigate. Asteroids of a decent size in close earth proximity are fairly rare anyway. We'll definitely see more research and probes going out to determine whether it is possible though.

[franky1]

spaceX has a starship that can hold upto 100tonnes.
doing a shipment per month is 100tonnes a month landing on earth. so yes this can impact markets

world demand of gold is 4000 tonnes a year.
one shipment a month is 1200 tonnes a year = 30% excess new gold(if ontop of earth mining)

if it costs ~$900 to mine 1 ounce earth gold(wholesale production not market). 100tonnes is 3,527,400 ounces
which is a equivelent cost of $3,174,660,000 per space shipment.
so if they can mine space gold for less than $3billion.. then yes it can affect the earth market

[panganib999]

Pretty sure that if space mining does happen it's going to be privatized like regular in-earth mining, with only the "financially-capable" being able to take this venture and monopolies/oligarchies taking over the industry. So regardless if we found asteroids with billions of dollars in gold or whatever precious metal there is, It's not going to actually affect the price of these commodities since these private companies would do whatever they can on their end to stop the supply from diluting its value.

Or we can be optimistic and suppose that the introduction of more stuff's going to inflate the value of commodities like gold like crazy that no efforts can be made to up turn it, making gold easily accessible to everyone. Personally I'd choose the former even though it's a little dystopic since at the very least, it's not going to affect the investments of those people who have bought gold, or whatever precious commodity they are holding.

[poodle63]

honestly i think the price will differs in moon and earth for example, since transport requires money, if the transport fee is quite high then the price difference will be big, same will commodities across continent nowadays, different continent different price, and the law of demand and supply will still be relevant.
though if the supply of gold for example, gets affected because the mining is very effective then the price will surely plummets, i think it also depends on the utilisation of such precious metal in future modern world where the interplanetary mining is becoming real.
there are simply too many thing to considers. the fact that we don't know the estimated cost for starting up mining in another planet already means we can't really estimate the price and effectivity which means its all just speculations.

[Husires]

They all depend on the cost if they are cheap and regular trips, the demand for gold will decrease as a origin used in some central banks and will be replaced by another fuller. This will enhance the uses of gold in the industry and improve the efficiency of the devices.People will turn the attention of diamonds as a substitute for gold and banks will try to keep quantities of diamonds or any metal that has a definitive properties such as gold and there is a high demand for it.
I expect to see the results of space mining within 30-100, and if technology develops, some of us may be able to live to see that day, but so far you may see the generations that follow us.

[vv181]

It will readjust with the cost of the mining, itself. If the mining cost from space is still lucrative, which means that the mining cost and reserve within Earth are comparable or cheaper with space mining, the price or the market will surely adapt to the supply availability and the current demands.

With the basic fact of how the market works, it certainly applies to other commodities, such as your example, gold. So does with different specific parts of an area. Different places might have different costs, if the end price value, including, the transport cost etc., are still competitive within some market at specific places, the price will adjust.