Just days ago a story hit the wires regarding China's publicly expressed attitude toward gold. The report expressed negative feelings about gold as an investment. In my report on July 8, 2010, I referred to this statement as a Golden Smoke Screen as I documented numerous moves by China to expand efforts to buy gold, buy gold mines and even to buy gold ore or concentrates for their own refining purposes.Today I read in an article by David Levenstein, stating the Shanghai Gold Exchange has released some data. This data shows that in the first half of 2010, The total volume of gold traded on the exchange jumped 59 percent in the first six months from a year earlier to the equivalent of 3,174.5 metric tons, said Song Yuqin, vice general manager at the exchange. Make no mistake, China's gold demand is not only real but real big and rising. With the largest population on Earth, of any other country, the buying power of the citizenry of China is massive. Consider this: If each of China's 1.3 billion citizens, bought just .2 additional troy ounces of gold, Chinese citizens would have bought an amount of gold equal to the entirety of the U.S. Gold Reserves. It is my belief that this demand will serve to drive gold prices beyond the $2000 gold level. So remember that old Chinese proverb, Man who speak with forked tongue is blowing golden smoke and is about to buy so much gold he has to carry it with a fork lift.