What if China gets spooked and dumps all $725BN of US BONDS for $GOLD?

China has been one of the biggest buyers of physical gold over the past 10 years or more, but over the past 10 years Gold has been in a big-time correction which has suited China just fine as this would be the accumulation phase, but that phase is now behind us as GOLD has clearly broken out of this long-term consolidation pattern over past couple months trading close to $2400.

If China who is clearly a PERMA GOLD BULL realizes (and I’m sure this is already on their roadmap), see’s GOLD starting to run higher and no meaningful correction in sight and should one occur, likely short lived. Is it coincidence Janet Yellen has made a trip to China and what was the agenda? Bix Weir is sure it is slow down the sourcing of silver :), but as long as the Shanghai exchange continues to print 12% premium across gold / silver exchange, that request is falling on deaf ears. But more likely Yellen is concerned China dumping or accelerating their BOND Holdings which equates to $725+ Billion.

Dumping these treasury holdings provides China with a nice pot of US Fiat to go buy right now 15 tonnes of GOLD at today’s prices. Would dumping all these bonds be counter-intuitive causing yields to go higher and their principle taking a hit, maybe yes maybe no. The FED could not allow interest rates to go higher, (they have dot plot that says at least 4 cuts this year if not more), so the FED would need to come in and buy all those BONDS from China and China bangs all their principle at no risk. The question is how readily available is 15 tonnes of gold?