The news of the discovery of gold mines in Tongbai, Henan is said to have dominated the screen. The proven reserves are estimated at 31.55 tons, which is known as a very large gold mine. This weight that a truck can pull away is called a super large gold mine? The authoritative answer came: China's proven gold reserves are only 14,000 tons, and the annual output is only about 360 tons! The reserves of 31.55 tons are nearly 1/10 of China's annual output, so it can be called a super large gold mine.
Whether it is a mega gold mine or not does not need to be debated. Let's talk about why we were so excited after discovering gold? The main reason is the scarcity of gold, and the fact that gold has historically been used as a currency of general equivalent, out of its own use attributes. In particular, the Bretton Woods Conference after World War II determined that the US dollar was the international currency, and the US dollar was pegged to gold. After the collapse of the Bretton Woods system, the IMF used gold as a reserve asset for countries. As a result, countries still use gold as one of their reserve assets. Later, of course, the IMF invented a special drawing right.
In essence, the status of gold is "sunset". The monetary value of gold has largely disappeared. The use value of gold in industry is already very limited. At present, the main support for the value of gold is the reserve demand of the IMF and central banks, and the demand for gold jewelry. In particular, gold deposits are becoming less and less resources, resulting in scarcity. It can be said that the scarcity of gold leads to its preciousness. This is the reason why Everyone is excited about the discovery of gold in Tongbai, Henan.
From the broad concept of Qinling Mountain Range, the gold mine in Zhuzhuang Town, Tongbai, Henan, should be part of the gold mine treasure of Qinling Mountain Range. The Qinling Mountains in the broad sense range from Kunlun in the west, through Longnan and southern Shaanxi in the middle, to the Eyu-Anhui-Dabie Mountains in the east and the Zhangbaling Mountains near Bengbu. Its scope includes the area north of minshan mountain, longnan and southern Shaanxi meandering south of the Tao River and Wei River, the tributary of the Han River and Jialing River - north of the Bailong River, the east to Funiu Mountain and Bears Ears Mountain in western Henan, the mountain ranges around Fangcheng and Nanyang to form the Nanxiang Pass, at the junction of Henan and Hubei for Tongbai Mountain, at the junction of Yu, Hubei and Anhui for Dabie Mountain, the direction becomes northwest-southeast, to the huoshan and Jiashan mountains in southern Anhui as hills, and the direction is northeast to southwest. The Qinling Mountains in a broad sense are the watersheds of the Yangtze and Yellow River basins. The southern part of the Qinling Mountains belongs to the subtropical climate, the natural conditions are of the southern type, the northern part is the warm temperate climate, and the natural conditions are of the northern type. There are also significant differences in the characteristics of agricultural production in the north and south of the Qinling Mountains. Therefore, for a long time, people regarded the Qinling Mountains as the geographical dividing line between the "south" and the "north" of China.
From the perspective of the international market, gold has been hovering around $1800 in the past two years since it fell below $2,000, most of the time below. Including the frequent occurrence of emergencies such as rare global epidemics, they have not pushed up the price of the gold market, and the gold bull market seems to be far away, and investors must invest cautiously and pay close attention to its future trend. At the close of trading on October 27, gold futures for December delivery on the New York Mercantile Exchange rose $5.40, or 0.3 percent, to close at $1,798.80 an ounce. Briefly touched the high of $1800 during the session. Silver futures for December delivery rose 10 cents, or 0.4 percent, to close at $24.191 an ounce. It was mainly the weakness of the US dollar and the decline in US Treasury yields, which supported gold futures.
The dollar index rebounded higher after hitting a low of 93.483 since September 28. A stronger dollar makes gold more expensive for buyers who hold other currencies. However, in the current inflationary environment, gold should be able to maintain relatively good support.