What would an increase in gold material do to the economy?

Question

Let's say that...hypothetically, I happened upon a fresh, untouched gold mine. What would be the consequence if I took it out and decided to make myself rich, I mean how would effect today's economy? Would the value of the American dollar drop, rise, or remain neutral? Why or why not? Thanks!

Answer 1

It would happen that the gold price will go down, because if you were going to sell all that gold the quantity of gold on the world market will increase. For this reason, according to one of the most important principals of economy a higher amount of a determinate material in the world market, causes a reduction of the price of that material, so gold will cost  lesser than before

So, at the beginning you will sell gold and earn a lot of money, up to the time when the gold request reduces herself....

Answer 2

you have an untouched gold mine? lets go into business together and grow rich and powerful.  

Answer 3

Assuming you didn't just horde the gold, but sold it on the open market, the supply of gold would increase (perhaps substantially), causing the price of gold to drop.

The dollar really wouldn't be affected. Three hundred years ago, when gold was the sole measure of wealth, you'd expect to see the dollar appreciate against other currencies. Now, gold is an industrial metal, and since the dollar isn't backed by metals, but rather depends upon the value of the goods and services in the national economy that as a whole overwhelm the impact of your gold mine, you'd see very little effect.

Something big enough to move the dollar would be:

* A shift in the interest rates (higher rates=higher return=more demand for the dollar)

* A shift in expected inflation (higher inflation = lower real return to dollar-denominated assets = less demand for the dollar)

* A sudden hatred of all things American (lower demand for American goods = lower demand for the dollar)

Movements day by day in the dollar depend upon the trade of goods and services between all nations and the U.S., and so any new information added to the mix has a lot of noise to filter through before having an impact.