Gold

12/01/2024

A deposit of high-quality gold ore containing around 1,000 metric tons of the precious metal has been discovered in central China.

It’s valued at approximately 600 billion yuan or US$83 billion.

And they think there’s a lot more there to be found.

“Announcements of the findings have contributed to a further increase in the already skyrocketing gold price”.

That’s not exactly how supply and demand works. You find a large deposit and the price should drop.

But it got me thinking. There’s only about US$2.3b of RMB in circulation. So they’ve got enough gold to put their currency on a gold reserve.

That’d ensure that the RMB becomes the dominant global currency.

C’mon China, do it.