RE:RE:RE:RE:Gold Soars After Chinese Currency DevaluationI understand that China has recently been selling off US T-bills, along with other emerging market countries. The amaounts so far are modest relative to the size of their total reserve holdings, but I agree with you that can change overnight.
You make a couple of very important points. The Chinese leaders do not like to "lose face". We in the West perhaps do not share the same cultural sensitivities. (After all, Donald Trump IS LEADING the polls right now!) Governing China and keeping social order is a very tricky business and only works if their leaders are seen to be strong.
And yes, there are well over a billion of them! Any collective move towards owning even more physical gold will have a huge effect on the price. If, as I expect, their property and stock market bubbles burst, and cause trillions in losses, then there will be a rush back to gold.