It will be interesting to see if China can do a deal with VZ similar to the deal they did for oil. If they work a deal for gold in return for the billions in up front money straight up or through an export license then we have nothing to worry about.

Since the loan is based in US dollars it would be to VZ's advantage to pay China back with an amount close to spot. The higher the value of each ounce the more VZ pays off. If the price of gold goes higher then it will take less gold to pay off China.

Just a thought.