China News / China has found a huge treasure, it will become the gold king of the world

China News: South Africa's South Deep was named as the world's largest gold reserve. But now China is going to top this list, which has discovered huge gold reserves in its Hunan province. This discovery has not only given new hope to China's faltering economy but can also change the balance of the international gold market.

Gold reserves found in Hunan province: China's new 'golden dream'

This gold reserve located in Hunan province of China has been found about 2,000 meters below the ground. It has been claimed that about 1,000 metric tonnes of gold has been found in 40 veins here. Its total estimated international value is $ 83 billion (about Rs 7 lakh crore). This discovery has come at a time when China's economy needed a big booster.

With this reserve, China can not only increase its gold reserve by 50%, but it will also strengthen its global economic strength. China had about 2,000 tonnes of gold reserves by the beginning of 2024, and this new reserve is going to increase this number significantly.

China's Gold Consumption and Production Status

China is the world's largest gold producer, accounting for 10% of total global production in 2023. However, China consumes more gold than it produces. In the first three quarters of 2024, China produced 268 tonnes of gold, while consumption was 741 tonnes.

The discovery of this new reserve will help China reduce its dependence on gold imports and meet its domestic consumption as well as promote economic stability.

Impact on the global gold market

The discovery of this gold reserve will further strengthen China's position in the international gold market. China's new gold capacity will not only meet its domestic needs but will also strengthen its hold in the global gold trade.

Other major gold reserves in the world

Until now, South Africa's South Deep (929 tonnes) topped the list of the largest gold reserves. Indonesia's Grasberg (856 tonnes), Russia's Olympiad (737 tonnes), and Papua New Guinea's Lihir (680 tonnes) were among the major deposits. But the 1,000 metric tonne deposit found in Hunan has put China at the top of the list.

New hope for Chinese economy

This discovery has come at a time when China's economy is growing at a slow pace since Covid-19. This new gold reserve will not only boost China's economic stability but will also energise its global strategic ambitions.

Gold reserves: Geological process and strategic importance

The formation of gold is the result of geological processes over millions of years. This discovery of China shows that it is not only a leader in its scientific skills but is also committed to fully utilising its resources.

Conclusion

This gold deposit found in Hunan province can prove to be a jackpot for China. It will not only strengthen its economy but will also take it closer to its dream of becoming a global power. Now it remains to be seen what impact this discovery has on the international gold market and the geopolitical scenario.