Many prospectors like to supplement the yellow precious metal because of its perceived scarcity, as it is estimated that only 2500-3000 tons of new gold are produced each year. While the discovery of new gold deposits appears to have slowed, research also shows that gold is smuggled in some regions on a per-tonne basis and is often not accounted for in annual emissions estimates. It was recently reported that a whole mountain of gold had been discovered in the Congo. The Democratic Republic of Congo is known as a region where tons of contraband gold enter the global financial system undetected.
Surprising gold deposits contribute to precious metals supply shortage
It has always been said that the precious metal (Au) gold is scarce, and some reports even state that gold mining on earth will cease by 2050. In addition, it is estimated that some 2,500 to 3,000 tonnes of new gold enter the financial sector each year.
But unfortunately for those who think there is very little gold, amazing discoveries continue to be made. Many of these gold discoveries have yet to be discovered and over 3,000 tons of new gold are mined each year.
Analysts have recently questioned gold’s status as a safe haven because central banks around the world are hoarding gold, which could flood the market. Data from the 2008 economic crisis shows that central banks oversaturated the gold markets during the subprime mortgage disaster.
Surprising discoveries of gold occurrences and underreporting of gold production by miners also make it difficult to prove that gold is indeed rare. For example, in late October 2020, Bitcoin.com Newswire reported an unexpected discovery of about 40 million troy ounces of gold in the Siberian region of Russia.
The only reason the public knows about these discoveries is because the gold discovery was discovered by the local media. Last August, for example, 5,000 tonnes of new gold was unexpectedly discovered in the historic central European region of Silesia in Poland.
The huge gold deposits discovered in the Silesian village have, of course, fallen into the hands of the country’s Ministry of the Environment. The 350 inhabitants of Silesia were not entitled to this tonnage, but the news aroused wider interest in the region. Reporter Ann Chatham explained that no date has yet been set for the start of mining the ore, but locals hope the discovery will benefit the area or attract tourists.
Last week villagers in Congo discovered a mountain full of gold.
In the first week of March 2021, Ahmad Algobari, a Yemeni freelance journalist based in the capital Sana’a, reported on a huge pile of gold discovered in the Congo. There are no confirmed estimates of the amount of gold found in the area, but authorities have banned artisanal mining throughout South Kivu Congo.
A video from the Republic of Congo documents the biggest surprise for some villagers there when an entire mountain of gold was discovered, Algobari tweeted. They dig up the dirt in the gold mines and bring it to their homes to wash away the dirt [and] extract the gold.
Algobari shared another video showing people digging for gold in a mountain in the Republic of Congo, finding deposits of considerable size.
Yemeni freelance journalist in the capital Sana’a, Ahmad Algobari, shared a video from Congo last week that went viral. The video shows people rushing to a village in Congo’s South Kivu province because a mountain has been discovered there, its soil strewn with gold deposits.
The problem with gold deposits in areas such as Congo is that a recent United Nations (UN) report shows that gold production in the Democratic Republic of Congo remains systematically undervalued.
According to a recent UN report, Congo and other countries along its eastern border are known as major gold areas where billions of dollars circulate. Gold is extracted from the earth by so-called artisans. It is said that artisanal miners attempt to mine with the simplest of tools, such as shovels, as opposed to the more basic work with powerful excavators. In Congo alone, huge amounts of gold enter the financial system unnoticed from areas such as the provinces of Bukavu, Ituri and Luhihi.
Bitcoin is worth less than gold and that can be proven by code, the shortage of gold is based on faith and unreliable estimates.
The pile of gold discovered in the first week of March came from Lukhihi and caused a considerable gold rush among the shovel and artisanal miners. A village in the province of South Kivu in Congo is teeming with thousands of people. According to Venant Burume Muhgirwa, provincial minister of South Kivu, the gold rush has put extra pressure on the population of the small village. Muhgirwa and local authorities forced artisanal miners and even members of the Congolese Armed Forces (FARDC) to leave the gold mine.
All mining activities have been suspended until further notice, Mukhigirwa said.
Gold from Congo and other countries along the eastern border is generally systematically undervalued, a UN report shows.
Stories and a recent UN report finally show that the bright yellow precious metal gold (Au) may not be as rare as we think – or believe.
Discoveries such as the gold pile in Congo or the 5,000 tons found in a Silesian village in August show that huge gold deposits are being discovered regularly, although many gold finds go systematically unreported. On the other hand, it is known that the Bitcoin protocol for digital assets (BTC) has a maximum delivery limit of 21 million. A crypto asset like BTC is considered much rarer than gold, and the protocol ensures that there are no unexpected discoveries or underestimates.
With huge new gold deposits being discovered in regions around the world, not to mention unexplored ore under the sea (20 million tons) and gold that can be mined from asteroids, it is very difficult for some to prove that gold is a rarer commodity than bitcoin.
The National Aeronautics and Space Administration (NASA) recently considered building a spacecraft called Psyche. The spacecraft is designed to take images of the metallic rock asteroid, which has been named Psyche 16. The 226-kilometer-wide asteroid is composed of gold and other metals and is estimated to be worth about $10,000 billion.
How about the mountain of gold discovered in the Congolese province of South Kivu? Let us know what you think in the comments below.
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Photo credit: Shutterstock, Pixabay, Wiki Commons, Ahmad Algohbary,
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