The Chinese seem to be buying gold mines abroad in order to buy reserves as their mines in China soon will be facing exhaustion and also because their gov encourages them to do so for the purpose of recycling surplus dollars and in that way fight inflation. See graph below based on work done by Trevor Swan, an Aussie economist which says that trade surpluses based on an undervalued exchange rate and week internal supply and high demand do cause inflation.
They also seem to think that their managerial skills and work ethics can reduce costs and that sooner or later gov here will be more accommodating to Gina's (Rinehart) claim that in order to our mining industry to stay competitive temporary migrants from China and neighboring countries should be allowed in. And, of course, that our dollar will go back to its historical trend and the price of gold up.
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