Gold’s Influence on the Global Monetary System on the Rise
With highly-leveraged and very weak economies around the world seeing their currencies sink in value, a report from the Official Monetary and Financial Institutions Forum, (OMFIF) sees gold playing an important role in the gradual conversion to a multi-currency reserve system.
It is clear that with emerging economies around the world strengthening their positions in gold, and the sinking value of once powerful currencies such as the US dollar and the Euro, gold will come about as a truly international currency that will provide a consistent value relative to world economies.
While the report stops short of predicting a return to the gold-standard, it leaves no question as to the importance of the value of gold: ‘Gold will increasingly have a renewed role in the global monetary system, attracting a higher level of attention from policy-makers and financial market practitioners.’ – OMFIF/World Gold Council Report, January 11, 2013