China and Gold

[portart]

I am perhaps not well informed but I thought when countries are buying gold, they pay the going rate or perhaps a little less using their dollars. I was having a heated debate online with someone and he informed me that when China buys gold, they mine it at home and then pay whatever they feel it's worth based on the cost to mine, something like $400 an oz if you compared it to USD. Does any country wanting gold really pay the going established rate for it and if so, what country?

[dragoncar]

I don't get that either.  That's not "buying gold" that's "mining gold" or "stealing gold"

[portart]

It's interesting that the only people paying the spot price on gold are individuals or investors, not countries. Makes you wonder if a "real price" is established like buying out a publicly traded company. Even then, a price will be offered lower then the stock price if approved by the elected corporate board.