Maybe you think that gold in the world will not run out, but the fact is that gold in the world is limited and will run out at any time. Well, then what will happen if the gold in the world runs out?

What happens if gold in the world runs out can have a big impact, considering that gold reserves on earth are running low due to continuous exploitation. If gold consumption is not controlled and exploration of new reserves continues to decline, the world will face major changes in the aspects of the economy, industry, and even the lifestyle of the global community.

1. Global Financial System Instability

One of the main things that happens when the world runs out of gold is the destabilization of the global financial system. Although today’s paper money is no longer entirely gold-based, many central banks still hold gold as foreign exchange reserves and a guarantee of confidence in the currency.

If gold runs out, countries lose an important tool to maintain monetary stability. Currency exchange rates could become much more volatile as there is no hard asset to shore up public and investor confidence.

This can cause market panic, especially in countries where gold reserves are large and used as a tool of economic diplomacy. The loss of gold from global reserves can reduce competitiveness and bargaining power in international trade.

2. Gold Value Could Rise Uncontrollably

The next thing that happens if the gold in the world runs out is a very sharp price surge. The basic logic is the law of supply and demand. When gold supply approaches zero and demand remains high, the price of gold will rise dramatically.

This spike will have a direct impact on investment and trade. Those who own gold before the scarcity will benefit tremendously, while those who don’t will find it difficult to buy it in the future.

This situation could also encourage unethical practices, such as hoarding of gold by individuals and countries. The market will become unhealthy and full of wild speculation as gold turns into a very rare commodity.

Also Read: 5 Reasons Why Gold is a Safe Haven

3. The Tech Industry Will Be Shaken

Not many people realize that gold plays a vital role in the tech industry, especially electronics. Gold is used as a conductor in various devices because it is corrosion-resistant and very effective in conducting electricity.

One of the things that happens if the gold in the world runs out is paralysis in the technology industry sector. Manufacturers of smartphones, computers and advanced medical devices would struggle to find efficient substitutes.

Although there are alternatives to other metals such as silver or copper, none can match the quality and efficiency of gold. As a result, the prices of tech products could increase dramatically, which could even lead to a slowdown in innovation.

4. Changes in Cultural and Social Values

It is undeniable that gold has deep social and cultural significance. It is not only a symbol of wealth, but also of prosperity, status, and tradition. Many important celebrations and ceremonies around the world have gold as part of the ritual.

Imagine what would happen if all the gold in the world ran out. The symbolic value of gold would change completely. There would be a cultural imbalance, especially in societies that still uphold social status based on gold ownership.

In addition, there is a possibility that people will start shifting prestige values to other forms of wealth such as property or artwork. This could bring about major social changes in the structure of both modern and traditional societies.

We now know that what happens if the gold in the world runs out is not trivial. The impact can extend to various sectors ranging from finance, industry, to social life. So, it is important for us to realize the limitations of this resource and start thinking wisely in managing it.

One of the best steps you can take is to start investing in gold early on. The Treasury platform offers digital gold investment solutions that can be exchanged into physical gold. In addition, digital gold at Treasury can start from only Rp5,000.

Don’t wait for gold to run out to start investing. Let’s secure your financial future by saving digital gold at Treasury starting from Rp5,000!