SHANGHAI, CHINA -- The modernization of China and India will create the largest commodities bull market the world has ever known. Where will your money be?

This week I am writing from The Grand Hyatt Hotel is Shanghai, China.

I have traveled to China to visit some new mining sites and to see first hand as an investor what is happening in this amazing country.

There is no way you could possibly grasp what is happening in this country without being here. I recommend to all that it is worth the time and expense to make a trip to several of the larger cites such as Beijing, Shanghai, Shenzen, and Hong Kong to truly understand why investing in the precious and base metals at this point is such a no brainer.

The accommodations are the finest of anywhere I have stayed in my travels around the globe. Getting around the airports, hotels, and restaurants is not a difficult as you would think. There are many who speak English and the hotels are very helpful in giving written instructions to taxi drivers as to where you would like to go.

First there is a rich history that goes back thousands of years that you sense as you move from city to city. In Beijing, which is more traditional, to a city like Shanghai that is much more progressive and modern, you see the rich cultural heritage of China.

And, while there is still a big divide among the fast growing sector of middle and upper class between the lower class, all of the people I have met are some of the friendliest people I have ever known.

Now, I wanted to spend some time talking about the bigger picture in the base and precious metals.

Recently of course, we have seen our metals markets take a severe correction. This was to be expected after such a sharp run up so fast. I have already stated that this is nothing to worry about in the longer term, and that we should continue looking to beef up positions in our known good companies in the next few weeks or months.

As always, I am looking for new situations that have the potential to become our next Silvercorp, PolyMet, or Viceroy.

Remember that this is a time to pick up great values! I would suggest that in the next two to six weeks, some of the best buying points will be offered to investors who know what to look for.

But let's get back to the big picture and why I have no fear that these metals markets are going much higher than where we are or where we have been.

From the precious metals standpoint, the unsustainable debt levels in the United States will continue to erode the value of the dollar and increase demand for gold.

As the Asian and foreign appetite for U.S. paper lessens, this will put more downward pressure on the dollar. As the dollar heads to its intrinsic value, (much less than where it is today), gold will become more valuable simply because more people will opt to hold gold.

If you truly grasp how little physical gold is available in the world for investment purposes when that day comes, then you will have no problem understanding that gold will be priced well over a thousand dollars an ounce or more.

From a base metals standpoint, I don't see how anyone could be anything but bullish with the growth that continues in China and India. I have seen it for myself. This amazing growth of infrastructure in two countries that represent over a third of the world's population base will be on track for many years to come barring some world economic meltdown. While the economic meltdown scenario is possible, and could effect the growth of these economies, it won't eliminate them.

The growth I have seen on my visits to China indicates to me that these economies will need enormous amounts of base and precious metals moving forward, not less.

Let's look at some facts in China alone, not even considering India for the moment.

Migration from the country to the big cities in China is estimated at over 30 million people a year. Twenty thousand new cars are being purchased a day in Shanghai alone. Chinese investors now have in excess of $1.9 trillion dollars in savings and that number continues to grow.

With numbers that big and looking to continue for a decade or more, that will mean that a lot of copper, cement, steel, zinc, lead, moly, cobalt, gold, silver, platinum, and palladium will be needed to create the infrastructure to house that many people in these cities.

This is a level of infrastructure building that the world has never seen before. The U.S. infrastructure building after World War II is the only thing that we can compare this to and that pales by comparison to what is happening now in China.

Major construction is going on everywhere you go. Beautiful modern office buildings, condominiums, factories, hotels, bridges, highways, are going up at a pace the world has never seen.

The modernization of China and India will create the largest commodities bull market the world has ever known. This will last for decades in my opinion. The numbers are simple staggering!

In my opinion this will create one of the most important investment opportunities of a lifetime. China will become the world's largest economy in the next ten years and will become the world's next economic powerhouse. If you don't believe me come check it out yourself. This process looks unstoppable to me.

As investors, we can benefit simply by putting our money in the right precious and base metals junior mining stocks that represent the next big producing mines.

- Greg McCoach

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