(Kitco News) - China's economy is deteriorating, said Chen Lin, asset manager at Chen's Picks.
On Wednesday Lin spoke to Kitco. On Monday the People's Bank of China made a surprise interest rate cut to shore up the country's economy. The country has seen too much housing speculation, expressed Lin.
"The housing bubble is finally popping. There's a serious problem: a lot of empty apartments," said Lin who noted that a lot of people took on mortgages for uncompleted houses and apartments, and the deteriorating economic picture means that those projects may never get built.
Chen also noted that the Chinese market is "extremely important" to the miners noting that "every bull market in commodities in the past 20 years has been led by China."
Lin said the Chinese government is cutting interest rates and providing stimulus to provide some help, but the government is favoring energy projects due to high energy prices and the need for energy security.
"China really wants to be energy independent. If there [was] a war between the United States and China, the Chinese oil route from the Persian Gulf would be cut. The only oil would be coming from Russia."
Lin said the country is investing in nuclear power and solar. A solar build-out is bullish for silver. According to Lin, t is difficult to substitute silver in solar panels, since the metal is key to better performance
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