Silver: American and Chinese Competition part 2

Silver Snowball Preparation Today

Worldwide demand for silver is increasing. This metal plays a vital role in the expansion of the world wide economy. The Chinese demand for silver has grown exponentially in the last five years. China had been economically depressed for the last fifty years. Currently China is experiencing a dramatic upswing in the quality of life and the demand for consumer items has grown. Along with that demand the has been an increase in the purchase of coins and bars..

The consumer choices of the Chinese people now parallels that consumer choices of the US. Traditionally the average Chinese citizen used less than five percent of the amount of silver used by American citizens. China's thirst for this metal will cause industrial demand to triple. Industrial demands exceed what is being mined today. The shift in manufacturing demands for consumer products has propelled China's importance in terms of the metal industry around the world.

As the standard of living rises in China people will want they same products we associated with daily living. As people move from the villages to the cities there will be a large increase in the middle class

The Chinese middle class is significantly different from the American middle class. The sheer volume of the emerging middle class will force unprecedented demands for consumer goods, commodities, and related by products. This will drive metal prices for a long time to come. Silver is used in utilities, plumbing, wiring, lighting and consumer items.

China is experiencing depression and millions of Chinese are out of work. As the Chinese banking system is similar to our fractional reserve system commodity prices for gold and silver will increase in price. As people pull out from the banks the government produces more and more currency. This will lead to inflation not only in China but possibly Japan and Korea as well. The economy of America is tied to the economy of China. The economic ramifications of a depressed Chinese economy will affect the American economy.

As China seeks to protect its interests they will buy treasury bonds from the US government. This leads to a symbiotic relationship between countries. These situations produce specific similarities in consumer behavior.

Citizens of both countries are increasing their purchases of silver. This results in a simultaneous increase in demand and prices.

Investing in precious metals now while the market value is stable is a wise move. As the buying patterns of China grow in strength and number the price of silver can only go up. Make sure you get your fair share while you can.