China Discovers $80 Billion Gold Deposit as Top Gold Producers Boost Reserves

Nov 26, 2024, 01:30 PM

China has discovered one of the largest gold deposits in the world, valued at over $80 billion. This discovery has the potential to significantly influence global gold markets. Concurrently, central banks, including the People's Bank of China (PBoC), are increasing their gold reserves. The PBoC has reportedly purchased 60 tonnes of gold covertly, adding to its holdings and intensifying demand in the gold market. Central banks globally have increased their gold holdings by $600 billion between the end of 2021 and mid-2024, while reducing their euro and dollar reserves by $200 billion and $400 billion, respectively. The U.S. dollar remains the largest single reserve currency but has seen its share decline to 58%, the lowest level in recent history. China and Russia, the first and second largest gold-producing countries in 2023, are strategically leveraging their domestic gold production to bolster reserves. This trend highlights a shift in reserve strategies, with gold becoming a preferred asset amid economic uncertainties.