China keeps all gold it mines in it's country. Ed Steer was once available to read free and I did read him for over a year. Yes, from reading Ed, I believe China is swallowing up gold. They want to build their gold reserves so their currency can become the next world currency and kick the dollar to the curb.  Just part of the countries goal of entire world rule.  Also the people of China are owning gold because they are diversifying their assets.  Take all the people of China and have them each own just a pinch of gold and it is going to take a great deal of gold. 

China is already buying oil from Russia and settling the bill not using dollars, but yuan.

China yuan has just become part of the IMF.   They needed or need gold reserves to make this possible.