• China claims to have discovered the largest gold vein in the world.
• The discovery strengthens China’s de-dollarization ambitions.
• Americans can defend against the economic impact of lost U.S. supremacy with physical gold held in a Gold IRA.

China Claims World’s Largest Gold Vein

China has struck gold—literally—and the shockwaves could shake the global economy. China recently announced the discovery of a massive deposit of high-quality gold ore. It is estimated to possess 1,000 tons of gold worth $83 billion. Making it the largest known gold deposit in the world. The discovery has the potential to affect everything from China’s ambitions to your retirement account. ¹

Gold prices surged on the announcement. And the potential new massive supply raised questions about gold’s continuing upswing. Yet, the World Gold Council (WGC) was quick to doubt the find. They say the claim is ‘aspirational’. And much more drilling would be needed to turn this into a reserve. In addition, the WGC says Chinese mineral reporting standards don’t match global frameworks. “Even if proven, such a deposit would take years to bring into production,” they concluded. ²

Impact on Gold Market

Further analysis deflates concerns about oversupply. The global gold market produces 3,600 tons a year. It would see little impact from a mine producing 15 to 30 tons a year (roughly 1% of supply).³

⁴

China is already the world’s largest gold producer but is facing a decline in output. This a problem for them because Chinese gold consumption surpasses their mining capacity.
China’s gold jewelry demand rose 10% last year, while bar and coin investment rose 28%.

To get an idea of the size of the Chinese market, in the last two years, overseas purchases were about equal to a third of the gold held by the U.S. Federal Reserve. To meet demand, they need significant imports from Australia and South Africa. The newly discovered Wangu vein could reverse that trend and extend their reserves.⁵

China’s Gold Ambitions

China’s gold strategy is shrouded in mystery. The People’s Bank of China paused its gold buying spree earlier this year. They bought record-setting amounts of gold for 17 straight months. Now, analysis shows that China has continued buying gold secretly on the London Bullion market through bullion banks. The secret buying exploded after sanctions froze Russia assets in 2022 after the Ukraine invasion.

Analysts theorize that gold plays an essential role in China’s economic and political ambitions. Acquiring gold would fortify an economy in the grips of several financial crises. Greater gold reserves enhance China’s economic leverage and resource security. It also furthers their goal to usurp America’s role of global economic leader. Gold allows them to accelerate de-dollarization. Turning the renmibi into the dominant currency for international trade and foreign reserves.

Gold to Continue to Climb

Up 30% year-to-date, gold prices are spiking. Western investment is only now catching up to the East’s. Demand is driven by inflation fears, global conflicts, national debt concerns, and lowering interest rates. Yet, China’s insatiable demand underpins it all. And experts believe there is still more room to grow due to limited investment options for Chinese.

Managing director of Hong Kong based Precious Metals Insights said, “The weight of money available under these circumstances for an asset like gold… is pretty considerable. There isn’t much alternative in China. With exchange controls and capital controls, you can’t just look at other markets to put your money into.”⁶

Conclusion

China is known for playing the long game – focusing on steady, long-term growth in all aspects of national power. They aim to create a multipolar world where it stands as an equal or superior to the United States. This new gold bonanza feeds into that vision, assuming they can develop it.

Instead of lowering gold prices by opening this new reserve to the world, China may very well keep it for domestic consumption. If their projected demand continues, a perfect storm for gold prices will form. And, with newfound Chinese resource security, an increased threat of de-dollarization along with it.

Americans can protect against the impact of this Chinese lucky strike. They can move into gold and away from dollar denominated assets put at risk by de-dollarization and a more expansive, aggressive China. Call American Hartford Gold today at 800-462-0071 to learn how a Gold IRA can protect your retirement funds.

Notes:
1. https://www.livescience.com/planet-earth/geology/supergiant-gold-deposit-discovered-in-china-is-one-of-the-largest-on-earth-and-is-worth-more-than-usd80-billion
2. https://www.mining.com/chinas-super-giant-gold-discovery-claim-sounds-aspirational-wgc-expert-says/
3. https://www.mining.com/chinas-super-giant-gold-discovery-claim-sounds-aspirational-wgc-expert-says/
4. https://mining.com.au/massive-china-discovery-could-change-global-gold-market/
5. https://fortune.com/2024/04/21/gold-price-outlook-record-high-china-demand-consumers-investors-pboc/
6. https://mining.com.au/massive-china-discovery-could-change-global-gold-market/

• Find peace of mind this holiday season by adding physical gold and silver to your portfolio.
• Gold demand is increasing as numerous factors are increasing economic uncertainty.
• Contact American Hartford Gold today to learn how physical precious metals, especially in a Gold IRA, can safeguard your financial future.

Peace of Mind This Season

As we enter the holiday season, many of us are focused on expressing thanks for the good things in our lives and wishing for peace and happiness in the year ahead. This season reminds us of the value of connection, family, and traditions, even as we continue to face uncertainty in the world around us. As the year draws to a close, it’s an ideal moment to consider ways to safeguard our future, especially our financial security.

One such option that offers peace of mind in uncertain times is adding physical gold and silver to your portfolio. These precious metals have long been seen as a reliable hedge against economic instability, inflation, and other financial risks.

Gold: Symbolic and Practical

Gold is integral to many holiday traditions, especially as a gift. Jewelry makes up about 50% of global gold sales. Gold jewelry is cherished not only for its beauty but also for its enduring value. Yet there is far more to gold than just jewelry; it can be the foundation for a secure financial future.

Gold can play a vital role in building a balanced and diversified retirement portfolio. It offers a level of stability that other assets may not. By diversifying with gold, you can reduce risk and protect your wealth from the unpredictable swings of the stock market.

The importance of gold is no secret. Gold prices have surged more than 70% since 2020. Experts predict it could surpass $3,000 per ounce in the coming year. The past few months, gold has been on a record-breaking streak, recently crossing the $2,700 an ounce mark.¹

Why Gold

And while we hope for a joyous season, it is still plagued by uncertainty. Here are some of the concerns that have institutions and individuals turning to gold for security.

Inflation: After a brief respite, inflation is ticking back up. Cumulative inflation has reached 22% since 2020. Different sectors have experienced varying levels of inflation, with transportation seeing the highest at 34.71%, followed by food and beverages (22.68%) and housing costs (22.64%). ³

With inflationary pressures continuing due to factors like government spending, global conflicts, and supply shortages, gold remains a trusted hedge against inflation. Since it holds intrinsic value, gold typically appreciates when inflation erodes the purchasing power of the dollar.

National Debt: The U.S. national debt has now surpassed $36 trillion, contributing to fears of economic instability. As JPMorgan Chase CEO Jamie Dimon has stated, public debt is “the most predictable crisis” facing the American economy. In this environment, gold is considered a safe-haven asset that can protect your wealth against the devaluation of the dollar caused by rising debt. ⁴

Stock Market Volatility: Many analysts believe stocks are overvalued and that a market correction is imminent. When stocks fall, retirement accounts such as 401(k)s and IRAs are often hit hard. Unlike stocks, gold maintains its value and tends to move in the opposite direction of equities, making it a valuable asset for diversifying your portfolio.

Recession Fears: The possibility of a recession looms large, driven by aggressive interest rate hikes by the Federal Reserve and the economic slowdown that follows. A recession can lead to increased unemployment, stagnating wages, and declining business activity. During these times, gold often performs well as investors seek stability amidst uncertainty.

Economic Risks from Policy Changes: Proposed policies from political leaders like Donald Trump could further exacerbate inflation. His proposed tax cuts and corporate incentives, if implemented, may stimulate short-term economic growth. But they may also increase the national deficit. Additionally, his plans to implement tariffs on goods could push up prices across many sectors. Inflation could rise as a result of both. As prices rise, gold becomes an even more attractive option for protecting your wealth.

In addition, geopolitical risks, including trade wars and potential tariffs, could further strain economies. Creating even more volatility in financial markets. As such, gold is being sought after to hedge against such risks.

Conclusion

As you celebrate this holiday season, we wish you joy, peace, and prosperity in the year ahead. While we’re all focused on the people and traditions that bring us comfort, it’s also a good time to reflect on securing your financial well-being. Give yourself the gift of peace of mind this season—learn more about how gold, especially in a Gold IRA, can help safeguard your future. Call American Hartford Gold today at 800-462-0071.

Notes:
1. https://www.macrotrends.net/1333/historical-gold-prices-100-year-chart
2. https://www.gold.org/goldhub/research/gold-mid-year-outlook-2024
3. https://www.in2013dollars.com/us/inflation/2020?amount=52000
4. https://finance.yahoo.com/news/jamie-dimon-believes-u-public-110537564.html

• Goldman Sachs advises ‘Go for Gold’ – predicting it will break $3,000 an ounce in 2025.
• Record breaking demand is fueled by central bank demand, interest rate cuts, inflation, and global conflict.
• Physical precious metals held in a Gold IRA offer long term wealth protection and potential growth.

‘Go for Gold’ says Goldman Sachs

Russia’s recent threat of nuclear war caused gold prices to spike. But that is just the latest reason for gold to surge., Gold has been a standout performer in 2024. It recently hit a major milestone. A standard 400-ounce gold bar is now valued at $1 million. And the precious metal’s rally is far from over. Goldman Sachs is now telling clients to “Go for gold.” The investment giant predicts that gold prices could reach $3,000 per ounce by the end of 2025. Gold AND silver both offer a hedge against economic uncertainty and a potentially lucrative growth opportunity.¹

Goldman Sachs’ Bullish Case for Gold

²

Goldman Sachs has laid out several compelling reasons why gold is set to climb even higher in the coming years:

Central Bank Demand

Global central banks continue to buy gold as part of a diversification strategy away from the U.S. dollar. While the pace of buying has slowed slightly, demand remains near record levels. This trend is partly driven by growing U.S. debt, which makes Treasury bonds less appealing. Central banks see gold as a more stable and reliable reserve asset in the face of rising debt levels.

Federal Reserve Rate Cuts

Gold prices tend to thrive during periods of monetary easing. And with unemployment on the rise, more rate cuts are likely on the horizon. Goldman Sachs analysts believe lower rates will help stabilize gold prices above $2,600 per ounce. The cuts set the stage for continued growth.

Furthermore, potential political interference may undermine the independence of the Federal Reserve. As a result, confidence in the U.S. dollar could falter, driving investors toward gold.

A Hedge Against Inflation

Inflationary pressures are re-emerging. The two major measures of inflation both rose in October. And they are poised to go up. Trump’s proposed tariffs may result in higher prices. Economists estimate they could cost the average U.S. household $2,600 annually. The tariffs would likely result in a rise in trade tensions, which would also help inflate gold prices.³

Geopolitical Uncertainty

Ongoing global conflicts are likely to support gold demand. Especially as the wars in Ukraine and the Middle East grow hotter. The threat of global economic instability is driving investors to take a “flight to safety.” As gold proves itself to be a stable store of value in times of crisis.

The Technical Case for Gold

Gold’s bullish momentum isn’t just about economic fundamentals—it’s supported by strong technical indicators:

Historical Patterns: Since 1980, gold has gone through several bull and bear cycles. Key recovery periods like 2004, 2011, and 2024 highlight its resilience.

Breakouts Across Markets: Gold has reached all-time highs in major currencies, such as the Swiss Franc. This signals broad-based strength.

Silver/Gold Ratio Stability: Unlike past gold peaks, the silver/gold ratio isn’t spiking. An indicator that market sentiment isn’t overheated.

Relative Strength vs. Stocks: Gold’s strength against regional stock indices highlights its potential for long-term outperformance. And for the first time in 12 years, gold is outperforming emerging-market stocks.

As Goldman Sachs notes, inflation and geopolitical concerns are likely to keep gold on an upward trajectory. They recognize it as a critical portfolio diversifier.

Silver Is Also on the Rise

While gold has captured much of the spotlight, silver is quietly making its own headlines. According to the Silver Institute, silver demand is expected to exceed 1.2 billion ounces in 2024. A new record. Meanwhile, significant supply constraints are leaving a deficit of over 200 million ounces.⁴

Why Silver Is Gaining Momentum

Silver’s unique combination of investment appeal and industrial demand makes it a standout option:

Hedge Against Inflation and Instability: Like gold, silver serves as a hedge against inflation, currency devaluation, and systemic financial risks.

Dual Demand: Silver’s role as both a safe-haven asset and a key industrial component in the green economy has driven its price higher. Since March 2020, silver has outperformed many other commodities. That’s due to spiking demand for renewable energy technologies and electronics.

Interest Rate Impact: A recent report highlights silver’s historical performance during interest rate cuts.

“Monetary easing cycles are generally positive for the Silver Price,” the report states. “Since 1981, silver has risen in 6 out of the 7 easing cycles for an average gain of 16.8%.”⁵

A Supercycle in the Making: Analysts believe silver may be entering a supercycle, with price upswings lasting 10 to 20 years. While short-term volatility is possible, the overall trend is expected to remain upward.

Supply Constraints: The growing deficit in the silver market—driven by surging demand and limited supply—adds further support to prices. With industrial demand rising, silver’s long-term prospects remain strong.

Conclusion

Gold prices pulled back slightly after the election. The World Gold Council called the drop a buying opportunity:

“The gold price consolidation following the orderly U.S. election—flushing speculative positioning from near all-time highs—provides an attractive entry point to buy gold,” the council noted in its 2025 commodities outlook.⁶

Gold and silver are both positioned for sustained growth. Institutions and individuals are seeking refuge from inflation, geopolitical tensions, and economic uncertainty. The case for protecting your wealth with precious metals has never been stronger. And a Gold IRA from American Hartford Gold offers long-term security against financial turmoil. Call 800-462-0071 now to learn how you can secure your financial future with precious metals.

Notes:
1. https://www.kitco.com/news/article/2024-11-19/go-gold-says-goldman-sachs-prices-still-track-hit-3000-year-end-2025
2. https://finance.yahoo.com/news/goldman-says-gold-central-banks-023249823.html
3. https://fortune.com/2024/11/18/donald-trump-gold-trade-tariffs-inflation-national-debt-goldman-sachs/
4. https://www.kitco.com/news/article/2024-11-19/multitude-factors-are-aligning-silver-supercycle-silver-institute
5. https://www.kitco.com/news/article/2024-11-19/multitude-factors-are-aligning-silver-supercycle-silver-institute
6. https://fortune.com/2024/11/18/donald-trump-gold-trade-tariffs-inflation-national-debt-goldman-sachs/