This past April, Chinese officials made a surprise announcement that they had been secretly buying gold since 2003, increasing their gold reserves by 76% to 33,886,000 ounces. The Chinese government now owns 30 times the gold it held in 1990. And China is believed to be a leading candidate to buy some or all of the 12.9 million ounces the International Monetary Fund says it will sell.

But all this production and all this buying isn’t enough. (see chart of holdings above)

As for the private citizen -

Chinese citizens don’t receive government retirement money… and they don’t have company pension plans like people in many other countries do.

The middle class in China is expected to increase by 70% by 2020. So over these next 10 years, more Chinese and more money will be coming into the precious-metals markets, all at a time when inflation is almost certain to be high, adding to gold and silver’s appeal. Couple this with China’s long-standing cultural affinity for gold and you have the makings for a potentially life-changing gold rush.

Full article here - http://tinyurl.com/y9vmtz6

This is a leading fertiliser producer. Share price in recent months has been $100 – $130 CAD.

BUT

Potash Corp. profit dives 80% on low demand
Date: 10.22.09 Sector: All Metals and Mining Posted by: Bird Man

“TORONTO — Potash Corp. of Saskatchewan Inc. said Thursday its quarterly profit fell 80% as fertilizer demand and pricing weakened, prompting it to dim its outlook for the sector and sending shares lower.

The company, the world’s largest producer of potash, still anticipates rebound in demand for the crop nutrient in 2010, but it expects some of its production capacity will remain idle through the year.

“The uncertainty among fertilizer buyers has lasted far longer than we anticipated, but cannot continue indefinitely,” said chief executive Bill Doyle.”

source = blog on equedia.com

NB read ‘About Fertilizer’ pdf docs on POT site

ALSO check out juniors e.g.  FOS.TO and WPX.V

As of this date SP = $5.00 HKD.   Batches of 4000 only

Could drop to nearer 50 day MA

From half year report 2009

“The safety control solutions provided by the Group are mainly used in the petrochemical industry and the railway
industry. . . .

The Group achieved revenue of RMB529.1 million for the six months ended 30 June 2009 which represents an
increase of approximately 29.4% as compared with that of the corresponding period of previous year. . . .

Net profit attributable to equity holders increased by 37.5% to RMB107.4 million as compared with that of the
corresponding period of previous year. . . .

According to the first urban rail transport project proposal approved by the State Council, a total investment of nearly RMB700 billion will be made by 2015 for a planned rail length of 2,400 kilometres. As at November 2008, RMB100 billion was invested. . . . .

In the second half of 2009, it is expected that the decline in demand for downstream products and imported products
will continue to pose challenges to the PRC coal chemical industry and corporate profitability and project progresses
will still depend on the general economic environment. Since the coal chemical industry, which provides liquidized
fuel and electric power and basic raw materials such as chemicals, is closely related to the economic development,
its recovery will definitely come along with the revival of the domestic and international markets. . . . .

Two-way railway lines of 3,462 kilometres will commence construction and 4,662 kilometres of railway lines will commence operation. Electrified railway of 5,606 kilometres will commence operation. 80 new projects will start construction with an additional investment of RMB1.5 trillion. Given that the investment in railway industry in the second half of the year is generally more than that in the first half, state-owned railways will continue to grow rapidly in the second half of the year.
For urban rail transportation, during the first half of 2009, 28 cities have filed papers to the State for approval of
transportation projects, 19 of which have been approved. These 19 urban plans include the construction of 70 urban
railways completed by 2015 with a total length of approximately 2,100 km and a total investment of over RMB800
billion. Moreover, 46 railways in 14 cities with a total length of 1,212.3 km are still under construction. The urban
transportation plans filed by the 28 cities intends to build 91 railways with a total length of 2,600 km and a total
investment of over RMB1,000 billion.

Supported by the recent pick up of the oil price in the first half of 2009, the construction of coal chemical plants as demonstration projects (including coal to oil, coal to ethylene, coal to natural gas, etc) are progressing as scheduled for strategic development reasons as China is rich in coal but lack of crude oil.

All the above factors brought about a strong growth momentum for system sales in relation to the petrochemical industry for the six months ended 30 June 2009.. . . .

As at 30 June 2009, cash and bank balances (including bank deposits under conditions) amounted to RMB582 million
(31 December 2008: RMB392.1 million). The working capital (net current assets) of the Group as at 30 June 2009
amounted to RMB896.5 million (31 December 2008: RMB650.9 million), representing an increase of 37.7% from
previous year-end.”

STI (LONDON)

http://www.stratexinternational.com/home.asp

Stratex International is an exploration and development company focusing on gold and high-value base metals. Active in Turkey, the company is now expanding into Ethiopia.

“The Arabian Nubian Shield, which encompasses areas of Egypt, Sudan, Eritrea, Saudi Arabia and Yemen as well as Ethiopia, is a region with high discovery potential as shown by Centamin’s Sukari gold mine in Egypt, and Nevsun’s Bisha gold-rich volcanogenic massive sulphide deposit in Eritrea. We believe that Ethiopia offers similar exciting opportunities for rapid low cost discovery and is not subject to many of the economic and political constraints that neighbouring countries are exposed to, such as product sharing agreements and security issues. Ethiopia is both logistically and financially an easy and cost effective place to explore.”

Stratex has joined with NTF, a technically capable and well-financed Turkish company to rapidly developing the 542,318 oz oxide gold resources present at the Altintepe and Inlice projects. Additionally, Stratex has signed an option/joint venture agreement with Centerra Gold Inc. to explore and develop the Öksüt project, a high-sulphidation gold discovery located in Central Anatolia in Turkey.

Teck retain an interest in the assets by its resultant increased shareholding in Stratex of 14.3%.

Links :-

Teck              http://www.teck.com/

Centerra      http://www.centerragold.com/