The gold we currently have is the result of extensive human mining and refining, yet a significant portion remains buried deep within the earth and under the ocean. Extracting this hidden gold requires advanced technology. Over the past fifty years, mining technology has significantly evolved, but to meet the rising demand for gold, further advancements are necessary. But how much gold is still buried deep within the earth’s crust?
Scientists estimate that there is enough gold to coat the earth’s surface with a 1.5-foot layer. According to Bernard Wood, an Australian geologist, this amounts to approximately 1.6 quadrillion tons of gold. The challenge, however, is that most of this gold is embedded in molten lava. So, where else can we find gold more accessible? The ocean.
The U.S. National Ocean Service reports substantial gold deposits on the seafloor, with an estimated 20 million tonnes of gold dissolved in ocean water. This could theoretically provide every person on earth with about nine pounds of gold. However, extracting gold from the ocean might be more costly than traditional mining methods. Even if we could extract a small portion, it could significantly impact the market price. Many economists argue that the scarcity and current price of gold do not reflect the potential vast quantities beneath the earth’s crust and the ocean.
China, the world’s largest producer and consumer of gold, has turned its focus to marine gold. According to Stef Kapusniak, a UK-based engineer at a company specializing in remote deep-sea vehicles, China has acquired more mining and exploration areas in the ocean than any other country. They are also advancing their mining technologies, reportedly achieving 80% of the capabilities needed to build the technology and boats for deep-sea mining operations.
What would happen to the gold market if China or any other country succeeds in mining ocean gold? An increased supply could lead to a drop in gold prices. This price drop might trigger a rush of people wanting to sell bullion. Market fluctuations are inevitable, but the demand for gold remains strong. Its use in various industries, including smartphones, computers, and other electronic devices, is expected to rise. For example, Apple’s market is projected to grow by 10.9% in the next year, indicating a higher demand for gold in manufacturing. Additionally, governments, including those of Russia, India, and China, are increasing their gold reserves. This continued demand may help prevent a significant drop in gold prices.
Predicting market behavior is challenging, and for now, we can only speculate as deep-sea mining has not yet commenced. It is crucial to monitor the gold currently in circulation, and gold bullion buyers play a vital role in recovering unused gold from the market when people want to sell bullion.
