To better understand what China offers to gold, lets reverse the situation. Let us say that China has a means of interfering with the USA’s trade cash settlement mechanism and has threatened to use this interference in order to influence the United States to take such action that the USA does not necessarily wish. The United States announces that on June 28th, more than likely a deadline China has given in this reverse scenario, that the USA will settle all our imported energy costs from Saudi Arabia in gold rather than any other currency.
Consider how important that would be to gold. Think what this means to confidence in the fiat currency. We are not talking about a small meaningless country; we are talking about the two economic giants on the planet Earth. This is China versus the USA with the thrust being the SWIFT system and the parry being gold bullion.
This is history in the making. This is monetization of gold brought on as a parry to the trust of economic attack via the weapon, the SWIFT system. This is certainly economic war. It may well be an aggressive act that will change the economic world as we know it. It may be Phil that you have not thought out the implications of using the SWIFT system as a weapon. There is a huge backfire probable at a most unwelcome time in economic history.