China's 3900-Ton Undersea Gold Find: Will Prices Drop?

• China confirmed Asia's largest undersea gold deposit of 3,900 tonnes near Laizhou, Shandong province, in December 2025.
• This discovery, China's first fully confirmed undersea gold, represents 26% of its total reserves, making Laizhou its top region.
• Undersea mining is highly complex, costly, and risky, requiring 5-10 years (2030-2035) for potential extraction.
• Short-term gold prices will not be affected as supply hasn't increased; current drivers are geopolitics and central bank actions.
• Long-term, post-2030/35, large-scale production could slightly increase global supply (1-2%), potentially easing prices.

Why It Matters: China's massive undersea gold find won't impact short-term prices; extraction is years away, long-term effects minimal.