China finds the world's largest gold deposit, generating uncertainty in the global market

In Hunan province, China, the world's largest gold deposit known to date was discovered. With reserves estimated at more than 1,000 tons of pure gold, its value is equivalent to more than $80 billion.

This looks like it won't be the only find. According to Liu Yongjun, deputy director of the Hunan Geological Bureau, investigations in the surrounding areas have also detected signs of gold, which could lead to future large-scale discoveries.

China is already a leader in gold reserves

China is already a leader in gold reserves, with more than 2,000 tons, and is also responsible for about 10% of global production. However, with this new deposit, the main challenge will be extraction. The depth (up to 10,000 feet) and concentration (up to 40 veins) require state-of-the-art machines and strict safety measures.

China produced 375.16 metric tons of gold in 2023, an increase of 0.84% over the previous year, according to data from the China Gold Association. At the same time, domestic consumption of the metal rose 8.78%.

A long-term impact

Gold, historically considered a safe-haven asset, has seen a steady increase in demand, driven by geopolitical tensions and global inflation. With this new deposit, China not only secures its domestic supply, but also strengthens its ability to influence international gold prices.

In addition, the find could have an impact on global monetary stability, as gold is a key pillar in international foreign exchange reserves. However, the benefits of this find will not be immediate.

Mining the deposit will require considerable investment, and the deeper veins of the deposit could take several years to become accessible, meaning that the full impact of this discovery will be reflected over the long term.