China to Begin Buying Gold - Huge Quanities

China is now announcing that they are going to begin buying gold. See http://www.kitco.com/ind/vaughn/jan132006.html. This almost certainly will help drive the price of gold to above $600 an ounce, in my opinion, and it could be to $750 or so within a year. Silver will follow - perhaps proving to be a much better investment than gold itself. My advice: get into precious metals and precious metals stocks now. For silver, I suggest you AVOID Apex Mines (SIL) since I have learned that they have forward sold a lot fo their silver at a low price, which means they will be hurt as the price of silver increases. That helps explain why their stock has done poorly while other silver stocks like SLW, PAAS, and SSRI have grown sharply in recent months. For gold, I recomment GG, NEM, MDG - all solid companies. I've also bought just a little MNEAF, a junior gold company with properties in Argentina that appear to have rich potential.

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