Chinese authorities have announced the discovery of a huge deposit of gold ore, valued at around 78.5 billion euros. This deposit could be the largest ever discovered in the world.
Chinese scientists have got their hands on one of the largest gold deposits discovered to date. Located in the Wangu goldfield in Hunan province (southeast China), experts have detected more than 40 gold veins, containing around 330 tonnes of the precious metal buried up to 2,000 meters above sea level. depth. Using 3D computer models, experts estimate it could contain up to 1,100 tonnes of gold. To give an order of magnitude, this represents eight times the weight of the Statue of Liberty.
If these estimates are correct, the deposit would be worth around 600 billion yuan, or nearly 78.5 billion euros, according to officials at the Hunan Provincial Geological Bureau (GBHP).
An abundant and very high quality deposit
This deposit stands out not only for its quantity, but also for its exceptional quality. Gold is visible to the naked eye and reaches a concentration of 138 grams per metric ton of ore, compared to only 8 grams for a vein to be considered high quality. Tests carried out in peripheral areas also give hope that other significant deposits will be discovered nearby in the future.
China, a key player in the global gold market
Australia remains the country with the greatest gold “potential”, with soils which theoretically contain 12,000 tonnes of gold. It is followed by Russia, which has 11,000 tonnes, while South Africa occupies third place with reserves estimated at 5,000 tonnes. But this is just projection. So far, the largest known gold reserves are in the South Deep mine, South Africa, with 930 tonnes.
This new discovery therefore potentially places China at the head of the largest known gold reserve. Enough to also triple its reserves estimated at 2,000 tonnes. Its industry also provides 10% of world production. However, despite this dominant position and the new reserve, this would only be enough to offer a short respite to China.
Indeed, the country consumes a huge amount of gold, both for its industry and as an investment. According to Reuters, China consumed 741,732 tonnes of gold in the first three quarters of this year, but produced only 268,068 tonnes. The new deposits, as fabulous as they are, would therefore only cover national needs for only 1.4 years.
An impact on the global economy
This discovery is also likely to have significant repercussions on the global economy. This announcement, combined with increased geopolitical tensions, sent gold prices soaring, again surpassing $2,700 per ounce in the last week of November and approaching a record high.
According to analysts at Barclays, although high interest rates are temporarily weighing on the appeal of gold, which saw a slight decline in the first three weeks of November, a structural transformation in demand offers long-term support. Faced with economic uncertainties, many banks, including Goldman Sachs and Citi, have adjusted their gold forecasts. For example, Goldman Sachs raised its 12-month target from $1,970 to $2,050 per ounce. Projections for 2025 range from $1,709 to $2,727 per ounce. Bloomberg anticipates a simultaneous appreciation of gold and its digital equivalent, Bitcoin, by 2025. In the long term, some analysts envision scenarios where gold could reach $7,000 an ounce, or even $10,000, with the possibility of it partially replacing the US dollar as a store of value. However, commodity markets are highly volatile, so forecasts beyond a few years remain uncertain. Factors such as inflation, interest rates, dollar strength or geopolitical events can strongly influence prices.
