[LonePalm]

I would imagine that the gold purchases are made by a large number of individuals rather than the central government.

If that is the case they could be providing a discount if payment for goods & services are made in gold.

Wealthy individuals could also be liquidating their positions within the PRC and paying a premium for gold and/or easily traded securities that they can get out of the PRC when they escape.

The possibilities are abundant.

SpyNavy

Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)

[Melian]

[Bob Ireland]

***Wealthy individuals could also be liquidating their positions within the PRC and paying a premium for gold***

Communist oligarchs with private wealth... ? Seems plausible. ... food for thought.