I read The People's central Bank of China (i think called PBOC) should have bought 50 to 70 tons of gold in 2011 (Marcus Grubb, managing director World Gold Council). On the same article it states Central Banks (along with Russia, Mexico, South Korea) bought 440 tons of gold in 2011.
On this Italian economic newspaper (similar to FT) they also say China is not usual to communicate when it buys gold, and in 2009 PBOC surprisengly said they bought 454 tons of gold in six years.
Since dollar, euro and I think also yuan are FIAT currency (not connected to gold), why are they all buying gold to fulfill their gold reserves?
I'm not only asking why they are buying it now, but why do they buy gold in general. What do they need it for?
BTW: I read also this but I was unable to understand what they are talking about.