How is gold a hedge against currency risk?

What's unique about gold as a hedge is that it operates as what I call, "the 4th currency." There are really 3 major currencies in the world the dollar, the yen, and the euro. Demand for gold, again as I mentioned before quoting Greenspan, "tends to rise in periods of financial risk." A major source of financial risk in the financial markets today is currency risk. So the reason that gold is so unique as a hedge is it hedges this currency risk and acts as a 4th currency against which all the other currencies are compared. So it is considered to be the most sustainable currency. Paradoxically, the largest holders of gold today are central banks themselves, as a group. The last time I checked, I think, they still hold about 25% of all the gold that has ever been produced in the history of the world. You have to ask yourself, if they don't think it's valuable, well why haven't they sold it? They certainly had 30 years to do it since we've went off the gold standard. The other argument I make to friends is… one of the reasons to hold gold is for the same reason the central banks do. They're trying to hedge the same risk, which is the currency system may not hold up through a crisis and they may need the gold to fall back on. I think that's a perfectly reasonable reason or fair reason to buy gold.