is it really that bad?, page-27

When I say 'not allowed' I'm not talking about decree ... but the US has a mechanism that they have used for years, where gold can be 'borrowed' and sold, to be bought back later when needed. And they have used this to keep the market relatively stable for the last decade.

And the Chinese don't need to borrow - they have large reserves of gold, and indeed have been recent buyers. But if it comes to the point that they see the USD threatened by gold getting too high (above 1000), together with their USD investments, they will sell into the market to tamp it down.