China Stockpiling Massive Amounts Of Gold And Now Silver

(excerpt) Consider the following lead quote from a Thursday article printed by Bloomberg: “China, the world’s top consumer of base metals, will boost stockpiles, accelerate the closure of excess capacity, and provide tax breaks for producers as the country grapples with a raw-materials glut amid the slowest growth in decades.”…

Stephen Leeb: Go back to the Bloomberg quote. Some of the deception, while subtler, is especially critical to recognize as it can lead you to investment glory. The Bloomberg comment focuses on base metal stockpiles. Omitted from the article was any mention of gold and silver, materials that are not base metals, but every bit as important.

I have talked a lot about silver and the near certain future and critical scarcity of this vital mineral. Between August, 2015 and April, the latest data I have, silver inventories in China (on their exchange) have climbed more than sevenfold from 233 metric tonnes to a staggering 1700 tonnes. China is stockpiling silver specifically for use in their enormous solar buildout program, which is a massive, multi-year program that will require unimaginable amounts of physical silver.

Follow The Leader (China) By Accumulating Silver & Gold

China’s end game is to secure enough resources to secure a decent lifestyle for its nearly 1.5 billion citizens. China realizes this means that its Eastern trading partners must also develop.

In a report authored by McKinsey Global Institute that was released this week, the consultant reports that over the most recent decade for which it has data, China has spent more on infrastructure than North America and Western Europe combined. Moreover, the remaining parts of the East led in large part by Chinese financing have spent three times more than China. I will have a lot more to say about the implications in future articles.

For now, the overwhelming message is buy silver, buy gold, and buy virtually commodity you can get your hands on.”