A huge amount of gold reserves has been discovered in Russia that has elated the bitcoin community.
The largest gold producer of Russia, Polyus PJSC, said its untapped Sukhoi Log deposit in Siberia holds the world’s biggest reserves — 40 million ounces of proven reserves with an average gold content of 2.3 grams per ton.
“The estimate of the reserves is an important milestone in development of the field,” said Chief Executive Officer Pavel Grachev in an interview in Moscow. The field may allow the company to boost its annual output by at least 70%, reportedly.
The audit showed that a deposit of 67 million ounces of total resources is up from the previously estimated 63 million. The main investment in the project, however, won’t start until 2023.
“We want to show that a project of this quality and scale can and should be carried out, taking into account the best environmental standards, despite the hard-to-reach location,” Grachev said.
With Gold’s supply to increase, bitcoiners took this opportunity to point out how there will only ever be a limited 21 million BTC.
“$127 billion of gold randomly discovered. Friendly reminder that there are, and forever will be, 21 million bitcoin,” tweeted Lolli, a BTC rewards site.
Bitcoin proponent Anthony Pompliano also pointed out how “No one knows how much gold exists in the world & it is unlikely to be nearly as scarce as people previously thought.”
But according to Dan Tapiero, both gold and bitcoin should be part of investment portfolios. While Bitcoin price rallied 82% this year, gold also recorded returns of +25% YTD, making a new ATH in August as central governments pumped a vast amount of stimulus into economies to mitigate the damage from the coronavirus pandemic.
Tapiero says people can front-run central banks and institutions by buying not only bitcoin but also gold, whose institutions’ allocation is still small.
“The funniest thing about bitcoiners is that they don’t realize that no one in the traditional money mgmt world gives a shyt about GOLD. Institutions have about a 1% allocation. It’s very early days for gold. It’s even earlier days for BTC,” he said.