Once again, China's propaganda machine is cranking out another diversion. While they would have the world believe Gold is nothing more than an after-thought with respect to its massive reserves, China's rhetoric isn't quite jiving with its actions. Per a July 7, 2010 Reuters release, China's State Administration of Foreign Exchange issued a statement regarding its gold policy.In short, the statement reiterated some age-old arguments against owning gold. One being that because gold does not produce interest income other investments are better suited for holding within their massive reserve accounts. Gold is also very volatile, subject to geopolitical events, currency fluctuations and speculation. And finally, (I love this one) to own gold you must incur costs of shipping and storage. The statement did acknowledge that gold can be a good hedge against inflation but so can other investments.These are the words but what are the actions and which speaks the loudest?In 2004, China legalized gold ownership by its citizens, then openly encouraged all citizens to take a portion of each paycheck they receive and invest it in gold. That's ironic. We encourage our citizens to spend their paycheck on foreign goods to bolster the economy. That definitely sounds like a contradiction of word and deed. I just heard our national savings rate is a negative .4%. In contrast China's rate is 20%. My don't we make a nice couple. At this rate they may soon own all the gold. And you know what they say about he who holds all the gold? In April 2009, news finally surfaced that in the period between 2003 to then, China had secretly increased its gold reserves by 76%. Why so secret? Then, in an April 10, 2008 Mineweb report we began to learn about China's desire to own more of the world's gold production. Industry research has confirmed that China's gold industry has overtaken the United States and South Africa. China is expected to consolidate its position this year as the world's largest gold producer. It is a dynamic industry in the world's most remarkable economy - in a period of high gold values and a dramatically depreciating US dollar.Of course it's easy to say you are not in the market for gold when you intend to buy the mine. If I owned a dairy cow I wouldn't have to buy milk anymore either.Just as recently as June 7, 2010, we see evidence that China is indeed, on a mission to own gold production. In a report out of Toronto, we read that, Canadian based Crystallex International Corporation entered into an agreement with China Railway Resources Group Co. Ltd. to mine gold in Venezuela. Then on June 24 in a press release by Coeur d'Alene Mines Corp. owners of Kensington Gold Mine near Juneau Alaska, we read that China National Gold Group Corp. will purchase half of the gold concentrates produced at the mine.The deal is the first of its kind between a state-owned corporation of the People's Republic of China and a U.S. precious metals mine.Now you tell me, does that sound like a lackadaisical interest in gold to you? Somethin' ain't right! Here in the U.S. our mint periodically runs out of gold, financial news talk does everything but tell people flat out not to own it and our government encourages us to borrow and spend. Meanwhile, China wants to control more supply and then instructs its citizens to save and invest some of every paycheck in gold. Seems to me China gold demand is growing faster than ever, or at least as fast as we can borrow and spend.You don't have to be a gold supply and demand scientist to see that if China continues to buy gold and we continue to borrow and spend, one of us is going to be deeply indebted to the other. If I was you I would take China's cue on this one and grab a few gold coins before China grabs them all. For incredible online pricing of today's most popular gold coins, be sure to visit LearCapital.com.