Sam China's hidden gold strategy
Having spent the better part of the last two decades developing China's oil industry, the government is now shifting its focus towards gold...
You see, China has never had an organized mining industry before, despite having some of the world's richest gold deposits.
How come?
Well, when the communist government took control in 1949, there was simply no desire to fund or create one.
Today, it's a different story... China has woken up and is spending a fortune on its mining industry.
At last count, it's estimated that 388 million ounces of UNMINED gold lie beneath China's soil.
That's 4-TIMES more than the annual production of ALL the world's gold mines, combined.
"Many parts of the country have gold reserves worth billions of dollars," reports The Star, one of Asia's biggest newspapers.
That's why for the past few years the Chinese government has been quietly setting the stage to capitalize on its vast gold reserves...
"Gold rush in China, people line up to buy gold"
~ Shanghai Daily
A few years ago, the Chinese government ran a "trial run," to gauge the public's demand for gold.
The results were astounding...
**At China Merchant Bank, the line of buyers was so long that the bank stayed open late into the night. They sold 1728 ounces of gold in just 4 days. One buyer spent more than $97,000 worth of gold...
**At Beijing Caibai Department Store, 10,582 ounces of gold bars sold out in just 7 hours. cannot find this
**When Shanghai Lao Feng Xiang Co, Ltd. – Shanghai's biggest gold seller – put 529 ounces of gold up for sale, they sold out in less than 2 hours...
First, the government invited a handful of experienced foreign companies to mine and produce China's gold.
You see, the government knows that historically, in a gold bull market, small mining stocks rise, on average, five times more.
And that's exactly why – in exchange for the rights to mine the biggest deposits in the country – the Chinese government took a stake in two of the most promising, experienced foreign companies.
Second, to help sell the gold, the government created the Shanghai Gold Exchange, allowing anyone to trade gold on the open market.
They also set up a special precious metals department at the Industrial and Commercial Bank of China to handle the expected demand when Chinese banks sell gold and silver bullion bars to individual investors for the first time ever.
Now, the government is boosting demand like never before. According to Chris Vick*, the first foreigner ever to be certified by a Chinese commodity exchange, gold has become "the hottest asset on the market, simply because of the government's marketing efforts."
*Name changed to ensure privacy
And China Daily reports, "The gold rush is reaching a feverish pitch in major cities across China."
Time is of the essence...
Keep in mind, the gold rush in China is happening incredibly fast – just like it did in China's oil industry, where investors in Sinopec made 360% in 10 months... investors in PetroChina made 140% in less than a year... and investors in China National made 102% in five months.
Even more incredible, it's expected that future gold consumption in China will increase at annual rates of at least 20%.
Can you imagine what that will do to the price of gold?
In short, if you get in alongside the government and take a stake in these 2 companies, it could be one of the easiest, fastest ways to make hundreds, even thousands of percent gains as the gold price surges.