China has announced the discovery of the largest underwater gold mine in Asia, near the city of Laizhou in Shandong, with total reserves exceeding 3,900 tons (equivalent to about 26% of China's gold reserves). This discovery could pressure global gold prices and shift some liquidity towards crypto, especially if China starts gradually injecting gold into the market.
What's the story??
What happened???
What happened is that China announced a huge discovery underwater, the largest gold mine in Asia, near Laizhou in Shandong. The new reserve increases the total gold there to more than 3900 tons, which is about a quarter of China's total reserves. The Chinese government intends to invest more than 10 billion yuan (1.4 billion dollars) in extracting this gold, which will allow it to process 12,000 tons of ore daily and produce about 15 tons of gold per year. This discovery is not only economic but also political, as it strengthens China's position as the largest gold producer in the world and gives it more control over global price movements.
The most likely scenario is that gold prices will face gradual pressure as supply increases, not overnight, because China will introduce gold to the market cautiously to avoid a sudden crash in prices. With weak demand for gold, part of the money will shift to crypto as an alternative for value storage, which could increase demand for Bitcoin and Ethereum. At the same time, America, led by #ترامب will be pressured to maintain market confidence, whether through growth policies or trade adjustments. This means we are entering a new phase where we might see gold retreat a bit, and crypto taking its place as a safe haven, and all this has a very high probability because it is based on supply and demand principles and global liquidity movements.
