The world’s biggest gold rush: How the world’s top gold miners are moving gold to Asia and beyond
FZE – FEDERAL RESERVE CENTER FOR GOLD & SILVER article By FZE/Getty ImagesFor most of its history, China has been a major source of gold for the world.
Since the 1930s, the country has produced more than 90 percent of the world gold reserves, and China’s exports have been the gold equivalent of nearly all the world trade.
But as the world became more reliant on Chinese energy and trade, it began to lose its edge, and its dominance of gold production declined in recent decades.
The global market for gold, which now totals nearly $1 trillion, has grown to encompass almost 70 percent of global demand, according to the International Monetary Fund (IMF).
In the past two decades, China’s market share has grown rapidly.
But China’s share of global gold reserves has shrunk from 70 percent in 2000 to around 30 percent today.
Today, China is still the world leader in gold mining, with more than 100 million tonnes of gold mines, according a Bloomberg survey.
But a growing number of mining companies in China are moving their operations overseas, taking advantage of cheaper and better technology to cut their production costs and increase their profits.
“They are getting richer and richer, but their margins are decreasing and their prices are dropping,” said David J. Clements, chief economist at the Peterson Institute for International Economics.
“They are becoming more and more dependent on overseas gold production.”
Gold has become increasingly important to China’s economy, with the country’s economy growing by nearly a third in the past decade, according the IMF.
China’s gold mines account for more than half of China’s total gold reserves.
China is not alone in the global scramble to get more gold out of its borders.
The world has been struggling with oversupply for years, with governments in the U.S., Europe, and Asia all struggling to keep up with the rising demand.
But the rise in demand for gold has also prompted some major players to shift their production from domestic to overseas markets. In the U