If that is so, why are they so late into the game? They have been buying USTB by the trillions before deciding they need to diversify? Or is is a much deeper and mature markets that they can get in and out without damaging their investments in that particular asset class?
The problem with that thinking of 'Gold is money" is expectations of turmoil to benefit. Market crash, wars, MASS killings, hyper inflation, destruction of USD, Deep political crisis in US/EUR, and whatever can help gold along.
So what happens when gold bugs get their dream run? Everything else is destroyed, civilisation as we know it breaks down and we go back to barter trading? Never mind where the next meal is, can I get enough gold, water or bake beans to make a trade for survival? This is just crazy thinking and will only cloud one's judgement.
IO can be consumed just like every commodity out there. Gold is a useless metal that only collects dust. The new economy has gone digital and the new valuable medium is the FB/Apple/Twitter/Instagram etc....Gold is a dead investment but it has a purpose as an insurance policy. Don't try to over insure yourself.
