US dollar to replace gold as wealth:
01.04.2008 11:22:37 Each day growing inflation, burden raw materials cost export orders at low ebb with low consumer demand and more free markets puts Indian economy falter.US dollar as global currency to replaced by old time metal gold.

(live-PR.com) - Nation wealth is to be measured with the balance of payment or with rich reserves of gold in the treasury is likely to be moot question for economist to think and work on such study.CCP meet on Monday night at PM residence is likely to give some relief but the situation is grim as the Oil touch 101 Dollar per barrel thus taking tolls on transportation.Gold touches 32 Dollar per Gram. Just forty years ago all world currencies were pegged to the gold standard. It means anyone could take his money to a bank and come out with gold. As a consequence a country's central bank could only print money to the extent it had enough gold in reserve to back it up. But this all changed in 1971 when paper-money was deemed as trustworthy as gold.India’s external debt has gone up by 31.8 billion dollars in first nine months of the fiscal to 201.4 billion dollars.This has interesting reports that our country with population of 110 Cr, per capita debt on each Indian stood at Rs 7,218.


World economies are loosing faith in the US dollar, the US finances its trade imbalance by printing more and more bills. But saying goes "A tree does not grow to the sky" thus printing more and more paper money does not give the intrinsic value of the nation economy hence if the economy remains in the inflation and deflation orbit in vicious circle then eventually the tall artificial tree tumbles down automatically.

Many nation in this unpredictable world economy will reduce their dollar reserves, gold is regaining its intrinsic value and is likely to be economies favorite metal as a safe commodity as treasure. Old civilization taught China and India, to hoard Gold from immemorial time thus the two big market has th potential for huge exporters of gold is presently the holders of US currency are both avid buyers of gold. Two nation do have more affluent middle-class consumes which has unflinching faith in gold hoarding and lust for this economical mettle so large portion of the gold market via jewelery goes in their market. To some extend wealth flows away from the dollar into gold.

Two big markets for this yellow metal China and India, gold is a wealth and not dollars . The two fastest growing economies may set global standard gold as asset tol measure wealth and in this race gold comes ahead of all wealthy commodity.


Author:
Naresh Sagar
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