Giant gold treasure discovered in China: The $87 billion find changes the game in the global market !
In China’s Hunan province, geologists have discovered an extraordinarily large gold deposit containing more than 1 000 tonnes of the precious metal. The discovery could have a major impact on the global gold market, as estimates suggest that the value of these reserves exceeds USD 87 billion. The discovery, reported by the Chinese media and confirmed by Reuters, raises questions about the economic and geopolitical implications.
During exploration, the scientific team identified 40 gold veins, which were confirmed to contain approximately 300 tonnes of gold in the central part of the exploration area. However, based on further analysis, geologists conclude that the total gold reserves in the area exceed 1,000 tonnes. The Xinhua news agency reported that the find represents one of the largest gold deposits discovered in China in decades.
The value of the reserves was originally estimated at USD 83 billion, or roughly 600 billion Chinese yuan. However, due to the rise in the gold price, which recently surpassed the USD 87 million per tonne mark, the market value of the deposit has risen to USD 87.67 billion. The gold price on world markets reacted to the news with a slight increase, reaching USD 2 715 per ounce at the end of last week, up 2.40% from the level before the discovery was announced.
According to economic analysts, this finding may slightly increase the global gold supply by about 0.41%. Such an increase is significant for a commodity that is commonly used as a safe haven for investors, but it is also lower than Bitcoin’s annual inflation rate, which is currently around 0.82%. Although the extraction of gold from this deposit will be gradual to avoid significant price fluctuations, experts predict that this discovery may affect long-term price projections.
Goldman Sachs said in its forecast that the price of gold could rise to USD 3 000 per ounce by 2025 due to its still strong position as an investment tool. Despite this optimism, there are concerns that the finding strengthens China’s influence on global gold supplies, which is seen as a geopolitical challenge at a time of macroeconomic uncertainty and potential recession risk in the United States. Some experts warn that China’s growing dominance of the gold market could lead to changes in the global economic balance.
Moreover, discussions on this topic are not limited to gold prices. On social media platforms, such as X (formerly Twitter), many commentators are pointing out the different perspectives of gold and Bitcoin as investment assets. While cryptocurrency proponents argue that Bitcoin offers technological advantages and limited supply, gold continues to dominate due to its historical role and tangible value. But this discovery is not just a matter of investment and geopolitics. It also raises the issue of sustainability and the environmental impact of mining, which may be an important factor in planning the future development of the deposit. In any case, it remains clear that this significant Chinese gold find will have a long-term impact on the global precious metals market and the wider economic environment.
Photo source: www.pexels.com
Author of this article
WAS THIS ARTICLE HELPFUL?
Support us to keep up the good work and to provide you even better content. Your donations will be used to help students get access to quality content for free and pay our contributors’ salaries, who work hard to create this website content! Thank you for all your support!
OR CONTINUE READING