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Message:: [QUOTE="desertgem, post: 1622063, member: 15199"]When the term "backed with gold ( or silver) " has been used in a country, it meant you could exchange the paper for the metal. Today in China , a Chinese  can put their Yuan/Rimb in a "Gold Savings account" where the paper is changed to POG value", but when they want to withdraw it , they are give back the paper money equivalent of the gold value, rather than the gold itself. They tend to use the term "Backed by gold" as a "safety" play rather than a monetary one. If a citizen can not get their money back in gold  in a gold backed account in the BOC, what luck do you think anyone would have ?  They are smart to do it , as are most central banks, to keep a ready reserve if needed in country to country exchange or in case of financial blockades like with Iran.  The paper money could say it is backed with gold, but if you can't freely exchange it for the metal, it is just fiat. Since they haven't done it  ( and I would be very surprised if they ever did) it is just financial propaganda. Remember it was just some months ago the Chinese were going to close the Comex and other western exchanges with their proposed  "better" metal exchanges. Didn't happen.[/QUOTE]