Gold News Today

China has recently claimed to have discovered the world’s largest gold mine, estimated to house more than 1,000 tons of gold. The $83 billion deposit could be a major boon to the nation’s de-dollarization efforts as it looks to shore up economic security with physical gold. News of the discovery jolted gold prices to the upside which have been sideways since the US presidential election.

The Mine At a Glance

The Geological Bureau of Hunan Province (GBHP) claims to have unearthed the most valuable and expansive gold mine to date. Through state-of-the-art 3D modeling techniques, geologists mapped out over 1,000 tons of gold ore beneath an already explored deposit of 300 tons. Here’s a breakdown of some key facts about this colossal reserve:

• Location: The reserves rest deep in the Wangu gold field in the Hunan Province of southeastern China.
• Reserves: Geologists estimate 1,000 tons of gold ore at 3,000 meters deep and 300 tons at 2,000 meters.
• Value: At current gold prices, the mine is estimated to contain $83 billion (600 billion Yuan) worth of gold.
• Ore Quality: The ore is claimed to boast 138 grams of gold per metric ton, an extremely rich concentration.
• Size: The Hunan mine could be the most extensive gold deposit ever uncovered, surpassing the previous record-holding South African mine, which contains 900 tons, by 10%.
• Mining Operations: China hasn’t announced any plans to develop the mine, suggesting extraction might be years away.

Experts Raise Doubts

As reports of China’s “super-giant” mine circulated the world, experts at the World Gold Council (WGC)—the gold market’s foremost authority—raised doubts over some of the claims. John Reade, senior market strategist, recommends taking initial reports in stride.

According to Reade, the claim of the shallower 300-ton deposit is “reasonable”, but “the 1,000-tonne potential resource sounds aspirational”, suggesting more drilling is needed to confirm the estimates and dispel any skepticism. Furthermore, Chinese mining isn’t subject to the same reporting standards as many Western nations.

Possible Impact on Global Gold Supply

China’s newly discovered mega-mine is unlikely to impact the gold supply, at least not immediately. Even if initial figures ring true, the Hunan deposit would only account for 1% (on the high end) of the global gold supply. Reade points out that worldwide production hovers around 3,600 tons and this mine would only produce 15 to 30 tons yearly. The depth of the deposits at 3,000 meters further complicates matters as extraction would take years and significant investments.

Boosting China’s Reserves & Influence

China’s golden discovery might not have a huge impact on global supply but could bolster the country’s bold geopolitical and economic aims. For decades, the Chinese Communist Party (CCP) has been fighting to topple the dollar’s dominion and replace it with the yuan. The country has been growing its gold holdings at record rates and even instituted gold-buying quotas.

If all 1,000 tons of gold were to be extracted and held within the country, China’s gold reserves (currently estimated at 2,264.32 metric tons) would grow more than 44%. This move would elevate China to the third-largest gold reserve holder globally, trailing only Germany and the United States.

This newfound economic stability could fuel China’s efforts to create a multi-polar economic landscape. As the ringleader of the BRICS coalition of emerging economies, the CCP has tremendous sway in the de-dollarization movement. Gold is the sturdy foundation upon which these countries are building their dollar-independent future, and this discovery could mark a pivotal step in achieving their objectives.

Tariffs have emerged as a cornerstone of President-elect Trump’s economic agenda. These moves symbolize the administration’s commitment to reinvigorating the US economy while holding other countries accountable for their end of trade bargains. However, the scale and scope of Trump’s tariff plan have caused concern among investors from both sides of the political spectrum, who are worried about their economic consequences.

In this week’s The Gold Spot, Scottsdale Bullion & Coin Precious Metals Advisors Steve Rand and Joe Elkjer explain these potential tariffs’ possible advantages and downsides, how the US dollar may struggle either way, and why gold is still bullish.

Trump’s Tariff Plan: Ingenious or Disastrous?

Thus far, the incoming administration has floated the idea of hefty tariffs on adversaries such as China and Iran, as well as major trading partners like Mexico and Canada. President Trump has even proposed 100% tariffs on BRICS nations that threaten to de-dollarize their economies. These threats have kicked up a duststorm of fierce criticism, fiery support, and widespread confusion.

Backers of the tariff strategy point to their ability to bring partners to the table and negotiate beneficial deals. The replacement of NAFTA with USMCA is often hailed as a success story of Trump’s tariff threats during his first term. On the other hand, critics highlight the economic impact Americans could potentially suffer, including higher inflation, rising interest rates, and higher costs.

In reality, tariffs are likely to spawn a combination of short-term pain and long-term gains:

Short-Term Pain

Higher Prices: Higher consumer prices are one of the immediate knock-on effects of higher tariffs, as American businesses have to increase prices to cover the cost of imported raw materials and goods. These price hikes ultimately fall on the consumer. This could further reignite inflation and force the Federal Reserve to revamp interest rates.

Economic Disruption: The mere mention of Trump’s tariff proposals is enough to send shockwaves through the economy. Small businesses are already scrambling to prepare for the moves by front-loading inventory and curbing expenses elsewhere. This widespread cost-cutting could lead to significant job losses and a weaker employment market.

Retaliatory Tariffs: Many people look to Trump’s first term when tariffs were used more as a bargaining chip than a concrete policy. However, the threat of major trading partners implementing retaliatory tariffs is real. Claudia Sheinbaum, President of Mexico, has already announced her intention to go toe-to-toe with Trump on tariff threats.

There’s going to be a lot more pain before we get to where we want to be.

– Sr. Precious Metals Advisor Steve Rand

Long-Term Benefits

Domestic Industry Protection: Over the past 20 years, the number of US-based manufacturing firms dropped by 21%. By taxing certain imported products, America’s manufacturing industry is protected and given a chance to thrive.

Fair Trade Practices: As the world’s largest importer, the United States has tremendous leverage when negotiating fair deals. Tariffs are a key strategy in establishing and maintaining advantageous trade agreements.

Economic Growth: Protecting key industries and securing better trade deals would remove some constraints holding back the U.S. economy’s powerhouse, enabling it to flourish. This revival in American industry could significantly boost the nation’s economic strength.

Long term, I expect tariffs to be very, very positive for the country, but it’s not going to be without some pain in the meantime.

– Sr. Precious Metals Advisor Steve Rand

Dollar Faces Massive Pressure

Even the most bullish outlook on Trump’s tariff proposals does little to improve the dollar’s grim diagnosis. The greenback faces an unprecedented series of obstacles, including a surging national debt of over $36 trillion, exponential interest costs of over $1 trillion annually, stubborn inflation, quantitative easing (QE), de-dollarization efforts, and incoming tariff hikes. All these pressures reduce global confidence in the dollar, resulting in a flood of USD back to American shores.

Gold Still Shines Bright

As the dollar’s influence and appeal wane, gold shines brighter. All the bearish economic and geopolitical factors for the dollar are bullish for gold. The yellow metal has seen record-setting central bank demand in 2022, 2023, and the first half of 2024. With plenty of risks we can’t ignore in 2025, experts expect the gold rally to continue. By the same token, the unprecedented rally fueled by sustained demand is expected to send gold higher throughout 2025, with many experts raising their price predictions.

The problems for the dollar are not a quick fix by tariffs. It’s still under a lot of pressure.

– Precious Metals Advisor Joe Elkjer

Don’t Wait to Buy Gold, Buy Gold and Wait

From deep-seated dollar weakness to short-term economic turbulence, all signs suggest gold’s temporary pullback is nothing but a blip before the next rally. Big banks such as Goldman Sachs and Citi encourage investors to buy the dip due to the yellow metal’s bullish outlook. At the same time, gold and other safe-haven assets are shaping up to provide much-needed protection against possible inflationary pressures in 2025.

If you’re interested in learning more about how precious metals can help you protect your wealth, claim your FREE COPY of our Gold & Silver Investment Guide. It covers everything you need to know about diversifying to start diversifying with these safe-haven assets.