Chinese geologists have found a massive gold deposit in the central province of Hunan. It is estimated to contain about 1,000 tonnes, valued at around US$83 billion.
Officials from the Geological Bureau of Hunan say they have detected over 40 gold veins at a depth of 2,000 metres and that there is rich mineralization further below.
Shares of the local mining company Hunan Gold Corp Ltd (SHE: 002155) were up by nearly 10 per cent Friday after the news broke.
This discovery has boosted the nation’s estimated gold reserves immensely. According to data from Trading Economics, the country is now predicted to hold about 3,265 tonnes of the commodity. Others say that number is even higher.
China has been the world’s top gold producer since 2007 when it took the lead from South Africa. Cultural demand for jewellery and investor intrigue has made China the number one consumer too.
As of March this year, the People’s Bank of China (PBC) had been upping its gold reserves for 17 consecutive months, according to a report from the World Gold Council.
The Shanghai Gold Exchange, which plays a major role in the nation’s industry, was established by the PBC in 2002. In terms of physical trading, it is the largest gold exchange in the world.
重大突破！湖南平江縣萬古金礦田探礦發現超40條金礦脈，金品位最高達138克/噸，探礦核心區累計探獲黃金資源量300.2噸。專家預測地下3000米以上遠景黃金儲量超1000噸，以現行金價計算資源價值達6000億元。#Gold #China #Hunan #TikTok pic.twitter.com/NMrnCrF6kA
— Hunan Times (@HunanTimes) November 22, 2024
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Increasing likelihood of WWIII to make gold surge, analyst predicts
Matthew Jones, a precious metals analyst at the British gold and silver trading company Solomon Global, expects the spot price of the metal to potentially hit US$2,800 an ounce by Christmas.
Its rally will be driven by Vladimir Putin continuing to lose patience with Ukraine and its backers.
“A world war involving Russia, the U.S., and NATO could drive gold prices to record highs due to several interconnected economic and geopolitical factors,” Jones said.
Gold being considered a safe-haven asset to hold during times of global turmoil is significantly responsible, he thinks.
“War. What is it good for?” Jones said. “Absolutely nothing except driving gold prices to record all-time highs.”
rowan@mugglehead.com
