Schiff Sovereign explains the rise of gold to its former place as the largest reserve asset on earth. They write:

Over the past year, gold passed both US Treasuries and the euro to become the single largest reserve asset on earth. And for the first time since 1996, central banks now hold more gold than US Treasuries.

Central banks almost never sell gold. On the rare occasion that some country does sell, it’s usually because they’re in a genuine crisis (like Turkey selling gold to defend a collapsing currency).

Or, as was the case with the British government in the late 1990s, they’re the dumbest people alive.

Absent that kind of emergency or stupidity, governments and central banks “hodl” their gold.

Bottom line, these countries are not shipping their gold out of London and New York to sell it. Just the opposite. It is proof they intend to hold the metal for a very long time, and that they are willing to give up using it as a financial instrument.

Read more here.