Transformation of Lead into Gold by Scientists - Potential Impact on Gold's Market Value
Gold, an esteemed precious metal with intrinsic value, is sought after for several reasons, primarily its rarity. This desirability has led humans throughout history to invest in gold. The world's supply of gold is finite, with roughly 216,265 tonnes mined since the dawn of humanity. If all of this gold were condensed into a single cube, it would measure around 22 meters long on each side.
However, a recent development at CERN's Large Hadron Collider (LHC) has raised questions about the limitless nature of this precious metal. An international team of scientists operating the A Large Ion Converter Experiment (ALICE) has successfully converted lead atoms into gold.
In a groundbreaking finding published in May, ALICE researchers quantified the conversion of lead into gold through high-energy near-miss collisions. Although the process yielded a minuscule amount of gold—equivalent to about 29 picograms, essentially trillionths of a gram—it represents a significant step forward in realizing the alchemists' age-old dream.
However, the practicality of this process is questionable. The LHC is an extraordinarily costly piece of equipment, requiring a decade and $4.75 billion for construction, and annual running expenses of around $5.5 billion. The gold produced through this method to date is virtually insignificant, accounting for less than a trillionth of a gold ring that existed for mere nanoseconds.
At present, the breakthrough holds little potential to disrupt the gold investment landscape. The chances of scaling this technology for practical use are minimal, and it would likely take decades to develop if such a scenario were ever feasible.
While the immediate impact on gold prices is negligible, a hypothetical scenario where mass-produced lead-to-gold conversion becomes viable could alter the dynamics of gold as a commodity. According to Hakan Kaya, senior portfolio manager at Neuberger Berman, an abundance of gold would diminish its scarcity value to some extent, potentially dampening prices.
However, Kaya believes that gold would likely retain its functional value as a store of wealth, much like diamonds, which maintained their value even when artificial alternatives emerged. Additionally, collectible items made from gold, such as gold coins, might gain even more allure as relics of a bygone era.
Many technological advancements would be needed before this becomes more than speculation. Kaya posits that there may be more economical and tangible solutions, such as mining gold from asteroids, for increasing the global gold supply in the foreseeable future.
This recent development at CERN's Large Hadron Collider has opened up discussions about the potentiality of science and technology to expand the supply of gold, previously deemed finite. However, the practicality and cost-effectiveness of converting lead into gold through the A Large Ion Converter Experiment are currently questionable, as the process yields minuscule amounts of gold and requires enormous financial investment.
