A significant discovery has been made in China, with what is being hailed as the largest gold deposit in the world. State outlet Xinhua news reported that geologists from the Hunan Provincial Geological Institute uncovered the gold reserves, estimated to be worth 600 billion yuan or $83 billion U.S. dollars. This remarkable find was located approximately 12 miles beneath the surface in Pingjiang County, China.
The discovery site, known as the Wangu goldfield, boasts 40 gold ore veins containing a total of 300.2 tons of gold resources. The Hunan Academy of Geology has projected that there may be over 1,000 tons of gold reserves at depths exceeding 3,000 meters.
China currently holds the title of the world's largest gold producer, contributing about 10% of global output in 2023 according to data from the World Gold Council. Prior to this recent discovery, the South Deep gold mine in Gauteng Province, South Africa, held the record for the largest gold reserve with approximately 930 metric tons of gold.
Gold prices have seen a significant increase in recent months, with gold futures rising over 32% year-to-date and more than 38% over the past year, reaching new all-time highs. The current price for one ounce of gold stands at nearly $2,674.
Investors have turned to gold as a safe haven amidst various geopolitical uncertainties, including conflicts in the Middle East and Ukraine. Additionally, concerns about the direction of U.S. economic policy post-election, the Federal Reserve's rate-cutting strategies, and the long-term implications of the growing national debt have further fueled investment in gold.
