from ainsley bullion company today - re china, page-11

rowing boat

you said
'What will cause Chinese demand to fall is a rise of price. This is exactly what we saw in 2011 when gold reached $1920'

but you have not realised that as the price of gold is quoted in US$'s this is prone to the more flexible exchange rate that the chinese have been telegraphing they are prepared to let the YUAN fluctuate to.... the days of it being in lock step with the green back

you mentioned since the price highs in gold the demand had come off, which is not totally right, but a move has been made since 2011 by the chinese, as they accumulate gold, to allow the Yuan to strengthen in an attempt to become a world reserve currency.
My feeling is, once they have enough gold they can thenif they wish, crush the dollar and use the relative strength of their own currency to maintain a strong buying policy of whatever amount of gold they want....

surely YOU can understand this