Daily Archives: November 11, 2010

Robert Zoellick, president of the World Bank, has said that gold is the “elephant in the G20 meeting room” and has suggested that the metal should be given a role in any fundamental reshaping of the global monetary system which may emerge from current international discussions. Although this was initially interpreted as a call for a return to the gold standard, Mr Zoellick on Wednesday said that this would be impractical. Instead, he seems to believe that gold should act as a kind of signalling mechanism, which flashes warning signs when uncertainty is rising, and confidence is falling, in the global economy. Maybe, but I am struggling to understand how this could be made to work in practice.