China Unearths Asia's Largest Undersea Gold Reserve: Will Prices Plunge?

• China officially announced the discovery of Asia's largest undersea gold reserve, estimated at 3,900 tons, in Laizhou, Shandong province.
• This massive find, 26% of China's total gold reserves, makes Laizhou the country's top gold reserve and production area.
• Despite the discovery, gold prices are unlikely to fall soon due to the extreme difficulty, high cost, and environmental challenges of undersea mining.
• Experts predict actual production from this reserve could take 5-10 years, likely starting between 2030 and 2035.
• While a slight long-term price impact is possible after 2030-35, current gold prices are driven by global tensions, central bank purchases, and interest rate expectations.

Why It Matters: Massive undersea gold found in China won't immediately lower prices; extraction is years away.