So what can rational investors take from the data? 1. The thesis that Central Banks are stacking is simply not true. 2. Central Banks if they are adding Reserves are largely adding FX Reserves. From there the rational investor can draw the following conclusions which have implications for our portfolio rationale. 1. Central banks value FX reserves above gold reserves. 2. Central bank purchases are unlikely to be drivers of gold prices. So why would the rational investor allot a portion of their portfolio to gold? Again, the rational investor looks at the behaviour of Central Banks, but not for its gold purchases, but for its FX purchases. CBs have an increasing demand for foreign currency, this has the effect that more debt will be issued to meet this demand (and facilitate government spending) which dilutes our purchasing power. So the rational investor allots a portion of our portfolio to gold as an attempt to protect the purchasing power in the face of monetary inflation. Central Banks, like governments are public institutions. Public institutions don't need to adopt the same strategies as private firms and individuals. The rational investor doesn't copy the behaviour of public institutions, we plan in order to protect ourselves from their behaviour.