China has discovered gold under the sea with the location of a multi-billion-dollar gold deposit in the water of the Bohai Sea. The deposit contains over 470 tons of gold worth around $16 billion in 2,000 meters of water. Laizhou Rehi Mining will start mining operations.
“It could require more than 1,000 people working simultaneously to recover the gold and it is as difficult as docking a space ship,” said Zhang Junjin, program manager for the three-year exploration project at Shandong Third Institute of Geological and Mineral Exploration.
The World Gold Council’s 2014 report “China’s gold market: progress and prospects” suggests that private sector demand for gold in China is set to increase to at least 1,350 tons by 2017. China became the world’s largest gold market in 2013 with a production of 438.2 tons/year 2013 – Rank: 1 and a consumption of 1,214.6 tons/year 2013 – Rank: 1
During the next six years there will be a growing market of affluent consumers in China by over 60 percent, or 200 million people. It is about two thirds of U.S. population! These newly emerging middle classes apart, rising incomes, an increase in private savings and rapid urbanisation across China suggest that the outlook for gold jewellery and investment demand in the next few years will remain strong.
The central bank holdings of 1,054.1 tons in 2013 makes China the fifth internationally.
Footnote: The World Gold Council notes that all of the gold ever mined would fit into a crate of 21 metres cubed.