Apparently the People's Bank of China view gold as more than mere tradition.
People's Bank of China official Zhang Jianhua stated yesterday that "No asset is safe now. The only choice to hedge risks is to hold hard currency - gold."
Jianhua also recommended that the Bank of China STACK THE SMACK!
"The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation."
We can almost picture The Bernank publicly stating that gold is the only remaining safe haven, and that The Fed should purchase gold during corrections- can't you?