I am not to sure about the chinese buying a lot of gold. Lets face it, relative to other stuff a person needs, gold is much more 'expensive' in China than in the west. The reason is that most things are so cheap there compared to us, that gold seems extremely expensive. Here a fridge costs about the same as an ounce of gold, while in China you may get a whole kitchen.

I have started buying supplies from China and it is scary how cheap a lot of things are relative to here, we are talking about 5 to 10 times less. I know I should't really do it but I can't be helped, because of the savings.

The rich chinese probably are buying gold, but I suspect it will take a long time for the masses to reach that stage. But then again, there are probably more rich people in China than the whole population of some of the smaller European countries. So yes you probably are right.