the yuan and pog; towards a new paradigm?

Hi all,

Over the past 30 days the trend in POG has been up

see for example kitco:
http://www.kitco.com/charts/popup/au0030lnb.html

whilst the yuan has devalued against the uS$ see for example XE:

http://www.xe.com/currencycharts/?from=USD&to=CNY&view=1M

much has been made of the rising wealth of the middle class in China (see for example the CWN half year report) and the number of billionaires in China

now here's the rub:

what exactly can all these people invest in

they cannot keep buying real estate in China. A crappy apartment in Shanghai cannot be found for $1m Australian

they can buy Sydney real estate but as the numbers are small it will only be a short time before a home unit in Chatswood cannot be bought for $1m Australian

they can buy $US bonds but they are not guaranteed of a default any more

this more or less says the only affordable thing they can buy is gold.

Of course this is just a theory but it could explain the POG rise.

thanks