Written by Nathan McDonald (Click for Original)
Gold
is an incredibly rare, valuable and thus highly sought after asset.
This is just as true today, despite what Western mainstream media would
have you believe, as it has been for thousands of years.
When
you pick up a solid gold bar for the first time in your life (an
experience I recommend to all) you come to the true realization that
"this is money". Not the phony fiat nonsense that governments around the
world have manipulated the masses into saving their life's wealth; not
some IOU that they tell you will "one day" have value.
The
Chinese government and its people know this more than just about any
other country in the world, perhaps only rivaled by Russia and India.
Because of this fact, they are now the worlds largest producer of gold
and one of the largest "official" holders of the yellow metal.
This
connection to gold runs deep within the Chinese population and there is
a strong desire to continue on with this trend. The only problem with
this fact goes back to my opening paragraph, gold is rare.
Not
only is gold incredibly rare, but it is becoming increasingly more
difficult to find new reserves. To make matters worse, much of the easy
to mine gold has already been discovered and mined, leading exploration
companies to search for the king of metals in locations where the ore is
becoming increasingly difficult to extract.
One such search has hit the motherload. The Shandong Provincial No. 3 Institute of Geological and Mineral Survey on Monday announced that they have discovered the largest ever Chinese gold deposit.
The
only problem? It's 2000 meters undersea. This discovery which is
located in Laizhou, eastern ?China’s Shandong province, is estimated to
contain 470.47 tonnes of gold. This amount is truly staggering and
equates to approximately $16 billion US dollars, based on current gold
prices.
The
magnitude of a project to acquire this gold should not be overlooked.
Yes, offshore mining technology has come a long way, but the cost to
achieve the end results may make the venture utterly unprofitable at
current market prices.
Yet
the true takeaway from this story is the fact that companies are having
to venture further and further into completely undesirable locations to
find new reserves and should point out the fact that eventually prices
WILL make these ventures profitable.
The
reality is, the world isn't creating anymore gold. As the global
economy continues down this path of uncertainty there will be one asset
that the world will turn to in its hour of need more than any other- the
king of metals, gold.
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