This is a syndicated repost published with the permission of Money Morning - We Make Investing Profitable. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
This month, already vast China gold reserves grew even larger…
The Shandong Provincial No. 3 Institute of Geological and Mineral Survey announced on Nov. 9 it discovered a 470.4-ton gold deposit in the East China Sea. That’s the largest and first-ever undersea gold mine found in the country. At the current price of gold, that amount is worth roughly $16.4 billion.
China has noticeably increased efforts to mine and stockpile gold this year.
Tags: china gold, china gold mining, China gold reserves, china’s gold reserves, gold China, Gold Prices, gold reserves china, price of gold
This month, already vast China gold reserves grew even larger…
The Shandong Provincial No. 3 Institute of Geological and Mineral Survey announced on Nov. 9 it discovered a 470.4-ton gold deposit in the East China Sea. That’s the largest and first-ever undersea gold mine found in the country.
At the current price of gold, that amount is worth roughly $16.4 billion.
“The gold deposit was 2,000 meters under the north coastal water near Sanshan Island. It is the largest and ever first undersea gold mine found in China,” Zhu Xi of People’s Daily Onlinereported on Nov. 10. “According to Ding Zhengjiang, the vice director of the said institute, the gold deposit is part of a crablike ore belt that lies deep at the sea bottom. Invested by Laizhou Ruihai Mining Ltd., the marine ground investigation took three years and involved over 120 kilometers of drilling, with 67 sea drilling platforms and nearly 1,000 geological workers at most.”
China has noticeably increased efforts to mine and stockpile gold this year…
On May 7, Beijing proposed a partnership with India to mine a very difficult – but promising – deep seabed area of the Indian Ocean. And in July, after six years of secrecy, China revealed it now holds 1,658 tons of gold reserves – a surprise 60% increase since it last reported in 2009. The country overtook Russia to become the world’s fifth-largest holder of gold.
The Red Dragon’s lust for the yellow metal will come as no surprise to regularMoney Morning readers. Resource Specialist Peter Krauth has frequently noted China’s high gold demand – and what the country intends to do with its growing store of wealth…
The Reason China Gold Reserves Are Growing Fast
“China has a long-time affinity toward gold,” Krauth wrote on Aug. 5. “For the past several years, it’s consistently been one of the top two gold consumers worldwide. (India holds the title of No. 1 gold consumer – for now.) China is also the world’s largest gold producer.”
Krauth believes China’s mad dash for gold is in large part because the country wants to exert more influence over the gold market – and gold prices…
You see, after a manipulation scandal plagued the nearly 100-year-old London Gold Fix, industry participants decided it was time to “open up” the gold-pricing process to transparency and modernization.
On March 20, the historical London Gold Fix was replaced by the LBMA Gold Price. Now the gold price is set through an electronic auction process.
Then in June, the Bank of China became the first Chinese bank allowed to join the exclusive group of banks that determine the daily gold price through the LBMA. It was followed by the Industrial & Commercial Bank of China. And more Chinese banks are working toward joining the small but powerful group that sets the daily LBMA gold price.
“Of course, China would love to have even more say regarding the gold price,” Krauth said. “China sees the United States and UK as relatively small players, considering their total annual demand. The country is not sitting idly by – it is taking several steps to gain greater control…”
Krauth breaks down China’s strategy to influence gold market pricing here…
To get full access to all Money Morning content, click here
About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.
Disclaimer: © 2015 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201.
The post Vast China Gold Reserves Just Added 470 Tons with Huge Undersea Find appeared first on Money Morning – We Make Investing Profitable.
