China has gone crazy for gold. A few months earlier, National Geographic Magazine reported that for the first time China had surpassed the U.S. as a buyer of gold jewellery. In a move that has gone almost completely unreported in the Western press, the Chinese government has created a gold investment that could dwarf the returns of gold bullion, ordinary gold stocks, or any other type of gold investment you've heard of before.

According to economist Andy Xie, China is trying to prolong its bubble because when the U.S. dollar bottoms — which he thinks will happen a couple of years from now —it will cause money to flow substantially out of China.