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Chinese Geologists Discover One of the Largest Treasures Ever: A Giant Gold Reserve Worth $83 Billion

The discovery reveals one of the largest known deposits on the planet, potentially the largest in history.

Jingming Pan Iysrkq5qq0q Unsplash
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China is doing quite well in the so-called “gold rush” of the 21st century. The country is currently going through a period reminiscent of the mining fever in California during the mid-19th century. The key difference is that, instead of gold, China seems to have been “blessed” with rare-earth elements. In fact, researchers are exploring the Himalayas in search of these valuable resources.

However, gold is still very much present.

An impressive discovery. A team of Chinese geologists recently uncovered a “supergiant” gold deposit valued at $83 billion at the Wangu gold field in Hunan province in Central China. They identified more than 40 gold veins containing 330 tons of gold at a depth of 6,600 feet. Additionally, 3D analysis suggests that mining experts could find even more gold (up to 1,100 tons) at a depth of 9,800 feet. If true, this could be one of the largest known deposits on the planet, if not the largest in history.

High-quality gold. The concentration of gold in the Chinese reserve is up to 138 grams per ton of ore, significantly higher than the global average. The high quality of the new deposit further emphasizes the significance of the discovery on a worldwide scale. Preliminary studies also indicate the potential for additional deposits in nearby areas, which could enhance the region’s overall potential. However, the exact increase is currently unknown.

It’s important to note that only about 10% of the world’s gold deposits are economically and geologically viable for mining. However, as the world’s largest gold producer, China possesses the technical expertise to tackle these challenges effectively.

Geological relevance and economic impact. Experts attribute China’s significant gold reserves to its unique geological position at the intersection of several tectonic plates. This produces hydrothermal activity that concentrates gold into veins. Additionally, China controls mining operations in Africa, another region rich in gold due to its unique geology.

While China leads the world in gold production, accounting for 10% of the global supply, it consumes three times more than it produces and relies heavily on imports from countries such as Australia and South Africa. As a result, the newly discovered deposits could partially reduce this dependence, but they would only meet domestic demand for 1.4 years.

Moreover, the economic impact of the recent discovery has been nearly instantaneous. The estimated valuation of about $83 billion generated a surge in gold prices, reaching nearly $2,700 per ounce. This is one of the highest levels on record.

Strategic importance. Gold is highly valuable beyond its use in jewelry and monetary systems. It’s also essential for advanced technologies, including communication equipment, computers, and aircraft engines. The recent discovery could enhance China’s strategy of accumulating gold to safeguard against global instability and reduce its reliance on the U.S. dollar.

Overall, China’s recent discovery highlights how the Earth’s geology, particularly the presence of “supergiant” gold deposits, continues to shape global economic and political dynamics. In fact, natural resources intertwine with geopolitics and global economic tensions and strategies.

To date, humanity has extracted more than 250,000 tons of gold. If melted down, they would form a cube measuring just 780 cubic feet. As such, the latest discovery emphasizes China’s geological wealth and underscores the need for sustainable strategies to manage gold, a finite resource.

Image | Jingming Pan

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