From International Man:

I've been spending a lot of time this week talking to my sources in China, one of whom is inside one of the country's sovereign wealth funds (SWF).

He could not discuss the details of the Rio Tinto bribery scandal, but indicated that it was far more about saving face and establishing position than anything else.

He also indicated that the SWF analysts were working around the clock trying to put deals together… for China it's a race against the clock for how fast they can convert their $2 trillion in US dollar holdings into strategic assets– namely oil and gold.

At today's deflated prices, putting together a really good billion dollar deal is a difficult thing to do. Putting together 2,000 of them is impossible. Doing it before the dollar collapses? Not a Chinaman's chance. And they know it.

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More on China and Gold:

Forget gold... this is how China is fleeing the dollar

Forget gold: This is how China is fleeing the dollar, Part II

China's big gold secret is out: Quietly building huge hoard since 2003