It is too expensive of holdinging gold under the current economic situation. However, it is weigh better to hold gold than to buy the US bonds. Comparing to other countries (e.g. USA, Germany), there is a lot of space to hold more gold. My suggestion is that producing more gold within China instead of purchaing or importting gold from the international market is a wise choice. Or, taking over big gold producing companies overseas is another option. Do not buy gold from foreign market.