Here is the point of view from Dr Vronsky President of Gold-Eagle:

WHEN CENTRAL BANKS SELL GOLD, Their Currencies Devalue

(vronsky)

Feb 10, 07:09

I wrote this piece way back in 1998. However, the principles and tenets are immutable...and therefore apply with equal force today.

http://www.gold-eagle.com/analysis_9...

When a Central Bank sells gold, the price of the shiny yellow in their currency will eventually and inevitably rise.