China Stuns Global Markets with Largest Gold Deposit Discovery in 70 Years
China just dropped a geological bombshell—unearthing its biggest gold find since Eisenhower was president. Move over, Fort Knox.
The Motherlode Moment
While central banks scramble to hoard bullion as a hedge against inflation (and their own monetary incompetence), China’s new 100-ton+ deposit could reshape physical gold markets overnight. Analysts are already recalculating reserve ratios.
Gold’s New Gravity
The discovery throws shade on fiat currencies and crypto alike—proving that when push comes to shove, humanity still reveres shiny rocks dug from the earth. Bitcoin maximalists, meet your 5,000-year-old competitor.
The Cynical Take
Wall Street will spin this as ‘bullish for gold ETFs’ while quietly shorting mining stocks. Some things never change.
China accelerates mineral exploration in recent years
The Chinese government has reportedly accelerated its mineral exploration efforts in the past few years. The country’s officials reported in 2024 that gold worth roughly $83 billion had been discovered in Hunan Province. The Hunan Academy of Geology identified over 40 veins of gold ore stretching nearly 9,800 feet below the earth’s surface. The highest grade recorded was 138 grams per metric ton.
Another 40 tonnes of gold were discovered in Gansu in October, bringing the country’s total gold production to about 377.24 tonnes of gold in 2024. Government data showed it was a 0.56% increase from 2023.
China also confirmed that its domestic consumption reached 985.31 tonnes last year. Demand for gold coins and bars rose over 24% YoY. The Ministry of Natural Resources reported that China’s analysts attribute this trend to the growing interest among the expanding middle class. The Chinese middle class is reportedly using gold to safeguard their wealth amid global economic uncertainty, making gold a popular SAFE haven across China.
Gold prices surge over 50% YTD amid growing demand
Gold prices have surged nearly 60% so far this year, hitting a record $4,381.21 per ounce on October 20. Data compiled by Yahoo Finance shows that the popular hedging asset has lost 0.59% (-$24.70) over the last 24 hours, settling at $4,169.80 as of 5:09 GMT -5. However, prices ROSE for the fifth consecutive session on Thursday morning, reaching their highest level in over three weeks.
The data also shows that gold prices have been on a steady rise for the past five years. Gold prices have increased by 4.23% over the past five days, 0.72% in the past month, and by more than 31% in the past six months. The prices have also surged 59.96% TYD, 61.52% in the past year, and by over 121% in five years.
Gold futures also gained 0.4% to $231.50 per ounce, while spot gold went up 3% to $4,232.68. Jigar Trivedi, a senior research analyst at Reliance Securities, said gold is extending its winning streak driven by a weaker dollar. He also believes the expectations of a Fed cut and persistent central bank accumulation are driving the prices of gold upwards.
Trivedi emphasizes that there is a scope for highs above $4,300 per ounce by the end of 2025. The senior analyst said that gold prices will continue to rise as long as real yields stay subdued and monetary policy remains accommodative.
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