India gold demand to rise on stronger ‘monetary asset’ perceptions: WGC

Ishara S. Kodikara | AFP | Getty Images Sri Lanka Prime Minister Ranil Wickremesinghe, center, speaks to supporters at the prime minister's official residence in Colombo on December 16, 2018, after he was reappointed as prime minister by Sri Lanka's president, the same man who fired him from the job nearly two months ago.

Nov 12, 2010 (LBO) – India, the top global consumer of gold, will see higher demand helped by a stronger perception that the metal is a reliable and safe “monetary asset” amid rising inflation, an industry body said. The report from the World Gold Council, an body representing mining interests, came shortly after Robert Zoellick, head of World Bank called for unbacked inflating paper fiat money to be tied to gold again as gold topped 1,400 dollars an ounce.

Pre-Paper Money

Until the creation of the US Federal Reserve in 1913, there was no central bank in America and gold was 20 dollars ounce from 1792.

In August 1914, when the Sterling ended gold convertibility to print money for World War I, money in key economies was almost directly linked to gold, tools protecting property rights and economic stability, following centuries of market selection of the metal as money.

But money went progressively off gold in the 1920s firing a bubble which ended in the Great Depression. In 1933 the US government prohibited citizens from holding gold and effectively laid the foundation to confiscate private property through central bank inflation.

After World War II all global currencies went off the