Why would you risk not owning gold for a timing trade when you know for a fact that fiat currency unbacked by gold will always erode in value?
How many dollars is China alone holding? They could snap up any IMF/Central bank sales without putting much of a dent in their USD holdings. They would be very happy to swap them out this way I'm sure.
You may be right but it is a risk I'm not willing to take for a short term trade with my core gold holdings.
Excess ST gold for trading purposes is a different story...but not LT core holdings.