Gold Breakout: Three Major Factors (Jim Willie), page-2

For mine, a very important (part-)paragraph from the article -


".....  The Chinese Yuan is not backed by Gold, a common error that most analysts and investors make. It means that nations with credits from the Chinese are given a choice. They can hold the CNY as currency or convert it to Gold, but only at the Shanghai Gold Exchange. This was the first step that China had to take to convince the energy (oil & natgas) exporters to accept CNY and thus to initiate the Petro/NG-Yuan trade. Call it the Petro-RMB trade. It is expanding very quickly in volume, to overtake the Brent crude oil trade. Nations will accumulate RMB in the energy trade, from gigantic Chinese oil & gas purchases. They will be led to convert to Gold, and to refuse holding USTBonds. China will only sell Gold in their domestic currency (Chinese Yuan) at the SGE. They will not sell Gold in any other currency. ....."