FORBIDDEN for 53 years… gold is now legal again in China.
In order to meet the surging demand, the government hired
this tiny company to construct the largest gold mine in all
of China. Mining begins 4 weeks from today…
Dear Reader,
I want to let you in on the biggest secret in the gold business…
In a secluded region of Southern China—in one of the most gold-abundant regions of the world—a secret government project is in the works…
China is constructing a new gold mine… the biggest in all of Asia, according to the Xinhua News Agency (China’s biggest news corporation).
When completed, this new gold mine will be 3-times bigger than China’s largest existing mine… and 19-times bigger than the average Chinese mine.
It will have just one function… to supply gold to China’s red-hot, gold-hungry economy… a nation whose gold demand will triple in the next few years, according to the World Gold Council.
But here’s the best part…
One tiny company—working behind the scenes with the government—gets 80% of the mine’s profits. Today, you can buy this company for less than $6 a share.
Imagine what the demand of 1.3 BILLION gold-hungry people will do to the profitability of this mine… not to mention the share price of this tiny company.
As Australian Business News recently reported, because of this massive gold mine this small company “may become the biggest gold producer in China.”
But if you want to get in while things are still cheap, you simply must hurry.
This new gold mine goes into production four weeks from today. There’s no telling how high the share price will go as a result.
And right now, you have the chance to get in before news of China’s biggest gold mine reaches the mainstream press here in America.
It’s the single best opportunity in gold I’ve ever seen.
Let me give you all of the details…
The Biggest Gold Rush
the World has Ever Seen
In 1949, the government outlawed gold as an investment in China…
And for five decades, gold-starved Chinese routinely snuck into government-owned mines and dug up as much gold as they could backpack, pocket, or carry in their arms.
In one instance 50,000 peasants raided a small mine in China’s Gansu Province, and unearthed hundreds of pounds of gold in a single night.
Between 1990 and 1995, more gold was illegally mined in China than the world's #1 gold producing nation—South Africa—could produce legally.
Authorities could not stop the looting.
And those who chose not to dig or steal, often ventured to British-owned Hong Kong Island and other non-Chinese cities to purchase their gold… just to smuggle it back home.
The situation got so intense that heavily armed government soldiers—known as Red Guards—routinely stormed Chinese homes in search of hidden gold.
It was just a matter of time before something gave way…
Finally, it happened...
Little did anyone know that this one event would lead to the biggest and most obscene gold rush the world has ever witnessed…
And it’s taking place—right now—as I write this letter…
Banned for 53 Years…
Gold is Once Again Legal in China
Because of a recent law – Chinese citizens are once again allowed to own gold… for the first time in more than 50 years…
This puts an end to the digging, stealing, and smuggling of gold in China.
What’s happening now is the biggest money-shift in China’s history—as millions of would-be illegal miners are descending from the gold-ridden hills… and into the local gold shops.
“The gold rush is reaching a feverish pitch in major cities across China,” reports China Daily.
With half a century of pent-up demand—the Chinese are literally crowding city streets… unleashing a full-scale buying frenzy.
They dropped their shovels… and opened their wallets.
“Whenever gold bullions hit the counter,” reports Shanghai Daily, “they are sold out very quickly after being put on sale."
Look at some of the most recent reports from the streets:
• At China Merchant Bank, the line of buyers was so long that the bank stayed open late into the night. They sold 1,278 ounces of gold in just 4 days. One buyer bought more than $97,000 worth of gold.
• At Beijing Caibai Department Store, 10,582 ounces of gold bars sold out in just 7 hours. The next shipment of 7,055 ounces sold out twice as fast.
• When Shanghai Lao Feng Xiang Co. Ltd.—Shanghai’s biggest gold seller—put 529 ounces of gold up for sale on a trial basis, they sold out in less than 2 hours time.
In the blink of an eye, the Chinese gold market has gone from practically nothing to a $2.6 BILLION a year industry…
Only this gold rush (and the amount of money it’s generating) is getting bigger… much bigger…
What does all of this have to do with China’s biggest gold mine?
As you’re about to see… everything…
“Gold Rush in China,
People Line up to Buy Gold”
Shanghai Daily
You see, for the last half-century the Chinese had very few places to invest their money.
“Although people want to invest, they don't have many channels,” says Qi Jingmei, a senior economist with China’s State Information Center.
“As the third largest gold buyers market worldwide, China has attracted the attention of the World Gold Council, the world's largest gold promotion organization, which made China its major market in gold promotion in 2003.”
Beijing Review
As far as the Chinese are concerned, gold is the best investment out there…
“Share trading is viewed as too risky, and wealth management services are still in their infancy,” reports ABC News.
When gold was banned, money just piled up, collecting dust in the nation’s savings accounts. China’s savings rate is a whopping 40%–one of the highest in the world. They’ve accumulated an astounding $1.7 TRILLION over the past few decades, according to a recent Associated Press article.
Now that it’s legal again—the Chinese are unloading those savings into gold…
• “[China’s new gold law] is designed to create a new investment outlet for China’s huge pile of household savings,” reports the BBC News.
• “With more cash in their wallets,” reports China Daily, “many Chinese are looking for ways to diversify their investments to guarantee the security of assets and to even seek a profit. For many gold seems to be the favored choice.”
According to a recent study, an estimated 260 million Chinese are willing to put as much as 30% of their savings into gold over the next few years. That would be an injection of more than $36 BILLION into China’s newly formed gold markets, reports the Bank of China.
That much money would create demand for about 3,000 tons of gold, says Xi Jinahua, a Bank of China gold expert.
The problem is, the Chinese government only has about 600 tons of gold reserves ready to put into the economy – just one fifth of where demand will likely rise… “…far from enough to cope with the potential gold rush,” reports China Daily.
Said another way, China needs gold… lots of it… and fast.
They have just two options:
1. They can buy gold on the world markets and pay market price (which is at its highest level in 25 years)
Or…
2. They can mine Chinese gold and create thousands of new jobs across the country.
The choice is obvious.
“The implication is clear,” reports GFMS, the world’s foremost gold research group… “Either China steps up exploitation of its own resources, or it may be obliged to import large amounts of bullion.”
Which is why five years ago the Chinese government initiated a new gold project… Thanks to a massive gold deposit—in one of the last remaining gold-rich regions of the world—they’re building the ultimate gold mine.
One gigantic mine to help meet the demand of 1.3 BILLION gold-hungry Chinese.
As I mentioned, it goes into production four weeks from today…
“CHINA TO CONSTRUCT ASIA’S LARGEST GOLD MINE”
The Xinhua News Agency (China’s biggest news agency),
March 6, 2006
Most people don’t know it, but China is actually jam-packed with gold…
There’s an estimated 22,000 TONS of gold lying beneath Chinese soil—that’s enough to meet worldwide demand for the next quarter century.
But here’s the most exciting thing about gold in China…
As the map below indicates, more than half of China has NEVER been fully explored. So there are potentially mountains of gold still left to discover…
• “There is lots of potential and untapped opportunity in China for gold,” reports The World Council. “It has quite a lot of gold…”
• Stephen Chew – CEO of one of Australia’s biggest gold companies – Kismet Oberon, says, “China has barely scratched the surface of its vast gold potential…”
• There’s so much gold, in fact, that Investors Business Daily says China could surpass South Africa, Australia, and the United States to be the world’s #1 gold producer within the next 3 years.
How come there is so much gold in China—and more importantly—why has it never been mined?
You see, back in 1949 the government not only banned citizens from buying gold—they actually took control of the entire industry too… the exploration… the mining… the production… and the distribution—forbidding any non-Chinese firms inside its borders in the process.
“China’s gold industry itself was off limits to outsiders, with mining and refining controlled by parochial and xenophobic states officials,” reports the Economist magazine… “Indeed much of China’s gold production was traditionally shrouded in secrecy and managed by the military.”
And because the government ran the industry so poorly—it received very little funding—almost no money went into mining for most of that time (less than 1% of world exploration dollars went into finding gold in China).
Cheng Fumin, an official with China’s State Economic and Trade Commission says as a result, “China’s gold production technology and management is backward compared with major gold production countries in the world...” That’s why between 1949 and 1981, China never produced more than 20 tons of gold in a single year.
As you can see, China’s gold industry was heavily ignored, despite having some of the world’s biggest and richest gold deposits. Today, huge amounts of untouched gold are just sitting there, waiting to be extracted.
That’s why every gold company on the planet wants a piece of this untapped gold heaven. According to the Economist, “There has been no shortage over the past two decades of would-be foreign gold diggers rushing into China in search of treasure.”
“Traditional gold-mining centers—Australia, South Africa, and North America—have been mined like a piece of Swiss cheese,” writes Business Week. But not China… Which is why it is so attractive to so many gold companies right now.
That’s because “many parts of the country have gold reserves worth billions of dollars,” reports The Star (one of Asia’s biggest newspapers).
And since 1949—for a span of more than 50 years—no foreign company has ever been granted access to China’s gold rich soil.
That is… until now.
After more than a half century of forbidden mining, one tiny expert gold company has the first-ever Chinese gold-mining permit issued to a foreign company. Southern Cross Equities, an Australian brokerage firm, says this company is as much as 10 years ahead of other companies looking to become established in China’s gold industry.
They’ve even acquired exploration rights for China’s uncharted gold territories. So they’re in line to get in on newer and potentially bigger gold projects in China.
But the real story is the secret government project they’re working on right now…
And it’s taking place in the richest gold region of them all…
Mining Begins in Just 4 Weeks…
One area of China holds more gold than all the others…
It’s a region known simply as the Golden Triangle. “The Golden Triangle is the best gold-endowed region of China,” reports The Globe and Mail, Canada’s biggest newspaper.
Here’s why this area is so special...
According to the U.S. Geological Society, the Golden Triangle has a similar “gold signature” to a region in Nevada called the Carlin Trend. The Carlin Trend is a gargantuan gold deposit—one of the world’s biggest. It was discovered in back in the early 1970s.
Why am I telling you this?
Well, the Carlin Trend has produced a monstrous 60 million ounces of gold over the past 35 years—and it’s believed to hold at least 40 million more. It’s probably the world’s most famous gold deposit. That’s because it turned a tiny, unknown company called Newmont Mining into a $22 BILLION gold industry giant. (Their stock price shot up from $4 a share all the way to $60 after they began mining gold at the Carlin Trend).
And recently, another “Carlin Trend” deposit (a rare occurrence in the gold business) has been discovered again—8,000 miles away—in China…
“Every gold miner wishes he could discover a replica of the prolific Carlin Trend of Nevada. For most it’s just a dream. But in Southern China a discovery which replicates in many ways the Carlin ‘signature’ has been made,” reports Tim Treadgold, a commodities expert whose research has appeared in Forbes and Investors Business Daily.
It’s on this deposit (China’s “version” of the Carlin Trend), that the Chinese government is constructing the country’s biggest and most modern gold mining complex—with the help of one small company…
You see, as I mentioned earlier, the Chinese government doesn’t have the technology to extract this gold efficiently or cheaply. So they hired a tiny company that could.
This small firm can produce all this gold and get it into the Chinese economy for as little as $183 an ounce. Most of the world’s biggest and richest gold companies can’t produce gold that cheaply. Which is why they were awarded the first-ever foreign gold mining permit in China.
Even better, as part of their deal with the government, the small firm gets 80% of the mine’s profits. With gold selling around $600 (Barron’s reports it could go as high as $8,000) an ounce, this small firm stands to profit handsomely.
Together for the past 5 years, they’ve been working hard, constructing this massive gold mine, gearing it up for production… spending a verifiable fortune—hundreds of millions—on China’s biggest mine:
• Twelve kilometers of sealed access road surround the massive gold deposit, making even the most remote parts accessible.
• Forty-two kilometers of high voltage power lines supply electricity to the newly constructed mills, processing plants, and facilities.
• An entire village has been constructed to accommodate a workforce of more than 700 mine workers, diggers, and drillers.
• Three cellular phone companies have even erected towers on nearby hillsides in anticipation of new business.
• China’s biggest railcar provider, The China Railway Company has already signed on to haul out and disperse the gold all over China.
As Asia Business recently reported, when fully completed, this new mine will be “the largest producer of gold in China.” It has at least 12 years of proven gold reserves (as they drill deeper, new reserves are constantly being added).
“The Company’s strong financial position will fund the development of [this new gold mine] to become China’s premier gold mine, while continuing an aggressive exploration and acquisition strategy,” writes the Australian Mining Club Journal.
World-renowned geologist Greg Jones says right now, this gold mine is like the “Carlin [trend] back in 1970…” meaning, it’s an enormous gold mine that very few people know about.
But it probably won’t stay that way for long…
Already 45,000 tons of gold ore have been stockpiled, ready to process. And in about 4 weeks time—this fall—these huge blocks of ore will be whittled down into thousands of precious gold bars… bullion that will be in high demand across China—sold out very quickly—just like in the gold-buying frenzies I talked about earlier.
After that, one tiny company will begin raking in a fortune.
As I said, it’s the single best opportunity in gold I’ve ever seen. Now you see why.
But if you want to be a part of it all you have to get invested soon. Right now things are still cheap. While this tiny firm trades for under $6 a share, it’s not likely to stay that way much longer.
If this opportunity even remotely interests you, I suggest you take advantage of this situation now.
Here’s everything you need to know…
How much money should
you expect to make?
By now you must be wondering how much money you could make with China’s newest and biggest gold mine.
Of course, the exact amount is impossible to predict. But one thing is for certain...
Whenever a small company works on a big gold project—developing a major mine—their share price almost always goes up as a result.
The returns for early investors can be staggering (you’ll notice many of these firms used to be very small, but are now some of the world’s richest)...
• Lihir (Lihir Island mine) – 1,037%
• Newcrest (Cadia Hill mine) – 1,839%
• Buenaventura (Minas Congo mine) – 781%
• Goldcorp (Red Lake Mine) – 996%
• Newmont Mining (Carlin Trend mine) – 1,566%
• Randgold (Morila mine) – 677%
• Centerra (Kumtor mine) – 187%
• Dundee (Chelopech mine) – 173%
• Meridian Gold (El Penon mine) – 957%
• Kinross (Fort Knox mine) – 710%
• Agnico Eagle (Laronde mine) – 456%
• Northern Orion (Alumbrera mine) – 215%
• China’s biggest gold mine – Production begins this fall
These are just a few I can think of off the top of my head.
And when you find a small company getting ready to develop a major gold mine, like the one in China...
Well...
Let’s just say the prospects of researching this kind of environment were enough to lure me away from my academic studies and fieldwork to begin my own investment research service.
My name is Matt Badiali. I’m a geologist. I hold a masters degree in geology and I'm finishing up my PhD in the same field. I’ve spent the last twenty years studying, teaching, and working in this industry.
I know how and where to locate rare and valuable resources… precious commodities like oil, diamonds, copper, and of course, gold. I've used sophisticated seismic to find oil, I've studied the field techniques of ExxonMobil and Anadarko, and I have years of field experience.
Along the way I’ve worked as a field geologist for a variety of firms... supervised drilling teams... explored the mountains of Colorado... and even combed the gold-rich Nevada Carlin Trend...
About a year ago, I left academia to take a job as a geologic analyst with Stansberry & Associates Investment Research.
And I began a monthly investment advisory showing investors how to capitalize on the booming oil business. And this service has been nothing short of an astounding success. I’ve already helped more than 22,000 investors learn how to cash in and make money in the oil industry. Already, I’ve shown investors some lightning quick gains:
• 25.7% in less than 3 weeks with a small Texas oil refiner
• 42.5% in just 8 months with a small oil survey firm
• 25.7% in less than 3 months with an ethanol producer
• 32% in 8 months with an oil services company
• 23.9% in 3 months with an offshore drill manufacturer
• 31.1% in 3 months with a Canadian oil and gas company
I can’t give you the names of these firms here because all of them are still buys… and poised to go even higher.
But recently I had another idea for an investment research service.
For years I’ve wanted to take my expertise in precious minerals and help people understand the business… and make some good money at the same time.
Now I spend the majority of my time researching and analyzing every inch of the precious metals and natural resources industry… utilizing inside contacts... experience in deep underground mines... and thorough understanding of geological exploration… to report my best investment ideas for a new financial research service called The S&A Gold Report.
And for the past 6 months, I’ve been working on something very unique… my biggest project to date—researching the tiny firm constructing the largest gold mine in China.
I’ve just finished compiling a special report that details the situation in full. It’s called China’s Secret Gold Mine.
This comprehensive report reveals everything there is to know about the company building China’s biggest gold mine. For example it covers:
•
China’s biggest and most modern gold mining project.
•
The first and only foreign company to receive gold mining permits in China—the tiny company that’s constructing this massive gold mine.
•
Why they’re about to become the largest gold producer in China (This small firm could easily be the next Newmont Mining Corp.).
•
The other big and potentially profitable gold mines they own in China.
•
The exploration projects they have lined up in China’s uncharted gold regions (remember more than half the country has yet to be fully explored for gold!). Another big discovery could very well be on the way.
As you can tell, this is not your everyday investing situation. You probably won’t read about this stock in your favorite financial journal or hear about it from your broker...
It was only after months of deep investigation that I discovered this tiny firm.
And if my company didn’t have a policy against owning companies we recommend, I would personally stake a very large claim in this company.
And I’ll be honest, I’ve considered selling this report alone by itself. Information like this is as valuable as gold itself in the investing world.
In the end however, I decided this special report is perfect for a small, exclusive group of individual investors—the charter members of The S&A Gold Report.
I would like to invite you to become a charter member of this brand new, sophisticated research service. And in return, I’ll send you the research on my biggest project to date—China’s Secret Gold Mine—at no cost.
The S&A Gold Report is our newest research service. And I’ll be the first to admit… this new service is not for the average investor.
How do you know if it’s right for you? Here’s how to decide…
The new bull market is here
If you’ve been paying attention to the price of gold lately—and I’ll bet you have—you’ve noticed quite a run up in price since 2001.
It’s more than doubled.
And if you’ve been eyeing the prices of other precious metals and raw materials, the story is exactly the same...
Silver—up 143%
Platinum—up 140%
Copper—up 300%
Aluminum—up 77%
Oil—up 270%
Zinc—up 263%
Nickel—up 450%
Lead—up 125%
Amazingly, these prices have only begun to go up.
You see, I firmly believe these are the dawning days of a 20-year bull market in commodities and precious metals. That’s because the markets for these resources—like everything else—run in periodic and predictable cycles.
Let me show you what I mean...
Looking back, there were 3 commodities bull markets during the 1900s:
1906—1922
1933—1953
1968—1982
The shortest of these bull markets lasted 14 years and the longest lasted 23 years.
The one we’re in now began in 2000. Historically speaking, we have at least until 2014 before this bull market expires.
In my professional opinion, I think it’ll last until 2020.
How do I know?
Take the price of gold for example...
As I mentioned, gold prices have soared again. Since 2001, they’ve already gone from $256 an ounce to as high as $730. But compared to the bull market of the late 70’s, this is only the beginning... This may be the biggest gold bull market in history!
Check out the chart below. That’s the price of gold adjusted for inflation — in the value of today’s dollars as measured by the Consumer Price Index.
See the last part of the chart from 2000 until today? That last little part is the current gold bull market. Though gold has been climbing nonstop since 2001, it still has a long way to go before it reaches the same highs as it did in the past.
Take a look at the sidebar to the right. This is just a partial list of precious metals companies that exploded during the last bull market of the late 70s and early 80s. As I’ve shown, the same cycle starting over again.
For this reason, natural resource and precious metals stocks are going to be the best things to own for the next few years.
As Barron’s recently reported, “for gold mining stocks... this is the buying opportunity of a decade.”
Time magazine reports, “Gold-mining stocks have doubled since early 2003, and most pros expect more gains-for mining stocks and the metal itself.”
That’s why I began The S&A Gold Report.
Every month in The S&A Gold Report I’ll show you 1-2 recommendations that are likely to benefit from this trend.
Let me give you a few examples of ideas I have coming down the pipe:
• A company that owns the world's largest undeveloped gold and copper deposits... totaling 25.4 million ounces of measured and indicated gold reserves... and 6.4 billion pounds of copper.
• A gold and diamond explorer that's growing at twice the rate of the price of gold. In the past companies like this have exploded 2,400% to 4,300% and more.
• A natural resource that's already grown faster than gold, silver or oil... it's price has exploded 1,300% in just four years... yet most investors have heard nothing about it.
In today’s dollars, gold will have to reach $2,150 an ounce to reach the same high it reached on January 16, 1980. According to some experts, this gold bull market will be unlike any we’ve seen before.
• Bill Murphy, Chairman of GATA, the international watchdog organization monitoring gold markets, “gold should top $1,000 within two years on its way between $3,000 and $5,000.”
• France's largest bank's equity brokerage, Cheuvreux says, “we could see the gold price spike up much further, possibly to $2,000 an ounce or even higher.”
• Barron’s reports that gold prices could realistically go all the way to $8,000 an ounce.
No matter which new plateau gold reaches, it seems imminent that gold is headed in only one direction—up. But gold isn’t the only precious metal getting ready to take off (prices adjusted for inflation)...
Silver is still about 50% below its all time high
Aluminum is still about 67% below its all time high
Nickel is 50% below its all time high
Zinc is also more than 50% below it’s all time high
Copper is not near its all time high.
And consider that the last time we had a bull market in precious metals people in Asia were closed off. China is now the #1 consumer of copper, steel, and iron ore, and #2 in the use of oil and energy products to feed its economy, which is growing at 20% a year. Now that China has entered the picture the situation is completely different than any previous bull market.
All this adds up to what will probably be the biggest precious metals bull market the world has ever seen.
In other words, the best place to have your money over the next two decades will be in precious metals and raw materials.
That’s where I think our newest research service The S&A Gold Report can help you.
You see, when the prices of precious metals go up, something wonderful happens in the stock market.
While gold, copper, silver, or any other metals go up during a bull market, the prices of a small group of stocks take off in a much bigger way. I’m talking about the companies that explore, mine, and produce these resources. These companies are very small (often less than $5 a share). And their share prices often multiply exponentially with the price of metals. They can literally go up thousands of percent during a bull market.
As Money Magazine reports, “mining share prices do not just follow metals prices: they exaggerate them!”
Source from : stansberryonline.com
