By Daily Crux Editor Braden Copeland:

Gold watchers have wondered for years if the Chinese have been secretly plowing a portion of their gigantic currency reserves into the world's best form of money.

Today, they wonder no more. Since 2003, China has raised its gold holdings by 75%, to 1,054 tons. This places China 5th on the list of largest gold owning countries... overtaking Switzerland, Japan and the Netherlands.

There is debate, though, over where they are getting it. The "party line" is from domestic sources. China is the world's largest gold producer... and does not allow export of any form of gold but jewelry. However, Ellison Chu, director of precious metals at Standard Bank in Hong Kong, says, "China has been buying via government channels from South Africa, Russia and South America."

Considering who China's biggest debtor is, we don't blame 'em for buying more gold.

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