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You should stock up on gold and silver while you can — in particular, physical precious metals and high-end mining shares.

In the short and medium terms, prices of precious metals will do whatever they do. Up a little, down some and sideways for a while. Day to day, you just never know. The price chart bounces around. But long term? Hold gold. Hold silver.

In fact, today there’s more reason to hold precious metals …

Why buy gold and silver, especially after the sell-down of the past year or so? Start with the fact that Chinese are buying lots of gold. Lots! Here’s the latest chart of Chinese gold imports from Hong Kong, showing strong, steady accumulation over the past two years:


Since September 2011, China imported 2,116 tonnes (metric tons) of gold. So in just two years, China has imported just under the equivalent of the entire gold reserves of France (2,435 tonnes) or Italy (2,451 tonnes).

Or look at it this way. While Western buyers and monetary players disdain gold and sell it — for example, while large Western stakes like SPDR Gold Shares (GLD) are liquidating gold holdings — the Chinese are buying gold, and then some.

Evidently, the People’s Bank of China (PBOC) is making good on its quietly stated long-term goal of creating a gold-backed national currency. That, and China is making all manner of bilateral trade deals with a host of nations, in which nations trade with China using their own national currencies and the Chinese renminbi. This cuts the U.S. dollar out of the cycle.

http://dailyresourcehunter.com/china-scolds-buys-gold/