China has unearthed a monumental gold reserve valued at $83 billion, a discovery that could slightly boost the global gold supply. State-run media reported the find in central Hunan province, where geologists uncovered the trove beneath the Wangu gold field in Pingjiang County.
Details of the Discovery
The discovery, announced by China’s Geological Bureau, is estimated to contain approximately 1,000 tonnes of gold. Over 40 gold veins were identified during core drillings, with visible gold detected across dozens of them. Of the total reserve, 300 tonnes of gold were located within a depth of 2,000 meters.
According to Xinhua News, this discovery could increase the global gold supply, albeit modestly. The United States Geological Survey (USGS) estimates that 244,000 metric tons of gold have been discovered to date. If accurate, this new find would increase the overall supply by 0.123%.
Gold’s Performance Amid Geopolitical Tensions
Gold has seen significant price growth this year, fueled by geopolitical tensions and inflationary pressures worldwide. Since the start of the year, the price of gold has surged by 28%, rising from $2,360 per ounce to an October high of $2,786.91.
This discovery comes as central banks and investors continue to turn to gold as a safe haven asset. However, its impact on the market may be limited, given the relatively small percentage increase in total supply.