This from Reuters:

Gordon Chang of Forbes magazine has a column out on why China might be monetizing gold in order to pay Iran for gold and avoid the US banking cartels. Due to the US control of the SWIFT payment transfer system boycott on Iran countries will no longer be able to pay for Iranian oil in USD after June 28th.

As the Wall Street Journal noted in early January, the sanctions are “an attempt to force other countries to choose between buying oil from Iran or being blocked from any dealings with the U.S. economy.” The strict measures put Chinese officials in a bind. They apparently believe their geopolitical interests align with those of Tehran, but their economy is becoming increasingly reliant on America’s.

So how can Beijing keep both Iran’s ayatollahs and President Obama happy at the same time? Simple, the Chinese can avoid the U.S. sanctions through barter. China has already been trading its produce for Iran’s petroleum, but there is only so much gai lan and bok choy the Iranians can eat. That’s why Iran is also accepting, among other goods, Chinese washing machines, refrigerators, toys, clothes, cosmetics, and toiletries.

The barter trade works, but Iran needs cash too. As it is being cut off from the global financial system, the next best thing is gold.
 

 

Hold on to your seats and hold onto your gold!