When the markets go down, headlines are made. But when the markets go up, it seems like no one cares.

The markets have been moving up rapidly, but where`s the media coverage?

While I believe a revived market trend will truly begin after America's Labour Day, the timeframe of snapping up bargain precious metals stocks is closing in.

The majority of the juniors, mid-tiers, and big producers have already climbed from their recent lows. Come September, the real move towards the upside will begin for these companies. That means if you don't act within the next few months, you're more than likely going to miss out on some early profits.

I've been tracking the trading patterns of dozens of precious metals stocks recently - from junior explorers to producing giants - and have witnessed bid support increasing and positive sentiment picking up. The smart money is loading up. There's no doubt about it.

HSBC Global Asset Management just recently unloaded most of its holdings of physical gold in favour of gold shares.

So while gold and silver fell over the last few weeks, the recent and immediate rebound has been even better. Aside from all of the reasons I have mentioned in the past, there's yet another reason why: China

Over the next year, we're going to see all precious metals (including the rare earths) rise even further in price.

From Paper to Metal

On June 28, 2011 China launched the first precious metals spot exchange in the country, the South Rare Precious Metals Spot Exchange. The exchange offers long-term electronics transactions including spot trading, precious metal products and raw materials, and spot deferred transactions on up to 18 precious metals products, with the first four being silver, bismuth, indium and tellurium.

Even whistleblower Andrew Maquire see Age of America Over?); all now able to buy gold in 10 ounce increments with the click of a button.

Once more of these international contracts go live, we`re going to see a strong demand for physical gold as the drawdown of physical gold begins to meet the obligations of the contracts. Buying gold directly from your bank account - that`s real demand. It's essentially like the SPDR Gold Trust, or target="_blank">see The Silver Conspiracy). Then on October 2010, we published another letter proving our theory and why silver will climb to new highs

What happens if everyone decides that they want actual physical delivery of their gold? What about silver?

When this story was uncovered last year, we saw some strong action in the markets from the information presented at the CFTC hearings. Before the hearing, silver was trading under $20. Since the hearing, silver nearly hit $50 as many silver shorts were squeezed out.

There's no doubt these highly leveraged shorts are extremely vulnerable and can easily be taken out by physical demand. When you go from trading paper to actual physical metals, that's when the prices of these metals will skyrocket as the demand doesn't meet supply.

The Pan Asia Gold Exchange, with its first ever rolling spot contract, could force many of the paper shorts to cover as the exchange increases its holdings of both gold and silver to supply the new demand and back up their trades with physical bullion.

The reasons why both silver and gold will climb are apparent. Now is the time to start looking for precious metals plays, if you already haven't done so.

While there are a lot of battered stocks trading near 52-week lows, that doesn't mean they are all bargains. I am currently looking into more speculative plays, as these are the ones that will see the biggest returns during the next phase of the precious metals bull run. The key is to look for companies with a great project in mine-friendly jurisdictions, but more importantly, a management team that can get things done.

While there are many great management teams loaded with geologists capable of advancing projects, I'll be looking specifically for those who are capable of raising money and supporting their own stock.

Too often I see great projects destroyed by teams comprised only of geologists with no market experience. I can't stress enough how important it is to have a management team with both strong market experience and geological know-how.

While I would not generally release a Special Report during the summer, the bargains are too hard to pass. I've narrowed it down to a few companies, so it's just a matter of meeting with the management teams to see if they are worthy.

It's going to be a great Q4...if you prepare.