In case you missed it, a massive gold reserve was discovered in the Chinese province of Hunan. The precious metal cache could be worth around US$83 billion, making it one of the most significant gold discoveries of all time. Undoubtedly, the find could have some pretty major implications on the price of gold. And though it means a ton of new supply found itself on the market, the price of gold responded pretty positively to the news event.
Why? China could really ramp up its gold reserve over the next few years. And as other nations also look to give their reserves a jolt, there’s a good chance that the big discovery could act as yet another bullish catalyst for gold over the long run.
Indeed, it may have come as a surprise to some gold price watchers that gold held up rather steadily in reaction to the find.
As an increasing number of investors look to take advantage of the post-election pullback in gold prices to hedge their…
