Gold as an alternative currency is an argument that has gained traction in the last few years. Since the sub-prime crisis in 2008, most central banks across the world have been printing currency in a big way. This has substantially eroded the intrinsic value of these currencies. There is an argument that central banks may prefer to hold reserves in gold rather than foreign currencies. That is because gold has limited supply. Hence, unlike fiat currencies, the supply cannot be increased indiscriminately and that will ensure that the value will be preserved. However, despite the constant arguments on these lines, not much is visible in the form of demand at the ground level. There is also a related perspective on gold demand from central banks. Demand from ETFs and Central Banks is another factor that affects gold prices. For too long, the central banks were the largest holders of gold reserves. Not any longer! Today large gold ETFs like SPDR have as formidable gold reserve as any of the large central banks. Of course, inflows into gold ETFs have been on the wane but it still accounts for a very sizable share of demand for gold. Whenever, there is a spurt in demand for gold from central banks or from ETFs, we have seen gold prices move up.