Thanks Tetlom.About the Yuan/China's foreign trade, just saw the...

Thanks Tetlom.

About the Yuan/China's foreign trade, just saw the following on jsmineset.com, the original was a FT report which requires registration (free):

China exports grow much more than expected
October 13, 2012 4:16 pm

China’s exports grew at roughly twice the rate expected in September while imports returned to the path of expansion, suggesting government measures to prop up economic growth are working and additional policy action may not be needed for now.

Customs data showed exports in September grew 9.9 per cent from a year earlier, roughly twice the 5 per cent rate expected by investors and up sharply from the 2.7 per cent annual rise recorded in August.

Imports rose 2.4 per cent year-on-year in September, in line with findings in the benchmark Reuters poll that had forecast a recovery from August’s surprise 2.6 per cent annual decline.

The trade surplus was $27.7bn in September, compared with a forecast of $20.7bn and August’s $26.7bn.

“The export data are much stronger than expected, signalling that overseas markets have recovered,” said Xiao Bo, economist at Huarong Securities in Beijing.

Mr Xiao said a trade recovery implied a slide in China’s economic growth was likely to have been arrested, boding well for a recovery to take hold in the fourth quarter to brighten the jobs outlook – a key factor for Beijing as a November leadership transition for the ruling Communist Party looms.

About China buying gold:
Two aspects that I can think of: 1. China is trying to extract itself out from the stranglehold of the USD system. It has signed bilateral currency swap deals with many countries so that bilateral trades are conducted using bilateral currencies, not through US dollar. 2. What medium does China choose to use as store of value for its surpluses. It has been the USD and US treasury bonds for 3 decades. I believe China has started to opt for gold as store of value for current and future surpluses. As to the value stored in USD/US bonds, the strategy is gradual, orderly dishoarding. Up till last year, China's acquisitions in Australia and in other countries have been mainly industrial resources/commodities, not gold mines. China's buying of gold mines/projects is a new development. I think we can probably agree that China plays long term strategies, very long term. This should also be the case for gold/gold mines/projects.