When it comes to precious metals like gold and silver, I don’t think any country’s population is more excited than China; and they have a LOT of people. The government is not only encouraging individuals to buy gold and silver but they are making it easy to acquire.
With the exception of gold vending machines in Europe, where else can the common person buy gold and silver at their post office, bank, or mint shop down the street?
China is the #1 producer in gold and #3 in silver. They are fast becoming consumers as well, be it bullion jewelry or bullion coins.
How do you profit from this?
One way is to be a buyer of gold and silver coins yourself, and I have written about the pros and cons of that. But what if you want some leverage to expand your profits?
I don’t recommend futures and options for non-professionals, so what can you do? Gold and silver mining and exploration stocks are the answer for people who can afford the volatility and risk of these investments. (This is NOT a solicitation to buy or sell anything!)
With all of this action in China, it makes sense to want to participate with a precious metals mining stock with a serious connection to China. There are dangers there so you have to be careful which is why I rely on professionals to get the information for me. People who are well connected.
One of my sources has just tipped me off to a silver stock with a huge China connection; but no 43-101 compliant resources there. What? How can that be?
Simple. The mine they have in China is so rich that they were able to put it into production WITHOUT the expense of drilling it off to a banker’s satisfaction. And we all know how sharp the world’s bankers are, don’t we?
This company has 4 mines in China and has smelters located within 100 miles of the mines, which keeps costs down.
The company has the advantage of a clean financial structure and tight share structure. Management also is a large owner, a good sign.
As you might expect, this company has some volatility, volatility in share price that you and I can use to our advantage. When silver has a down day, this stock will likely drop by a larger percentage affording us a good buy opportunity.
Then when the silver price is strong, this company’s stock responds even more so on the upside. That is exactly how we can leverage our profits over simply buying silver itself.
If you want to know exactly which stock this is, more about it, and get the inside scoop on the next stock like it to be discovered, Click here to learn more.