China has discovered a colossal gold deposit, one of the largest in the world. 83 billion dollars, if all the mineral it contains were extracted. A discovery which took place in the province of Hunan and announced by Chinese geologists. The deposit has a potential of 1,100 tonnes. While geopolitical tensions are worrying, between the trade wars announced by Donald Trump, the war waged against Ukraine by Russia or the extreme tensions around Taiwan and the threat from Beijing, the metal is currently reaching a record price of $2,800 per ounce. Central banks themselves are rushing into available stocks.
It is a discovery that could have significant economic, geopolitical and environmental repercussions. Economically, this significant addition to China's gold reserves constitutes real leverage. As the world's largest gold producer, accounting for approximately 10% of global production in 2023, this discovery could impact global gold prices and market dynamics.
Strategic discovery
Gold, as a safe haven, strengthens the country's financial stability and could serve as a buffer against global economic uncertainties. The exploitation of this deposit should also have a direct impact on the Hunan region, creating numerous jobs and boosting the local economy.
But beyond that, this discovery has a strategic dimension. China is strengthening its domination of the global market here. This gold could help diversify its holdings, thereby reducing its dependence on foreign currencies like the US dollar.
Another advantage: having a national source of gold reduces the country's vulnerability to geopolitical tensions or disruptions in global supply chains.
Scientific advances
Technologically, this deposit, located between 2,000 and 3,000 meters deep, illustrates Beijing's progress in exploration techniques, notably thanks to 3D geological modeling. Advances which could lead to other similar discoveries.
Finally, gold remains essential in China, whether for jewelry, investment or industrial uses. This deposit will make it possible to meet an ever-increasing national demand.
However, this discovery also raises questions. The environmental impacts of mining projects, notably deforestation or pollution, as well as Beijing's practices, often criticized for their effect on local communities, will be closely scrutinized.
However, this remains an additional wealth for Chinese soils, already very rich in these rare metals, earths and minerals so prized throughout the world.
