The Future Of Gold In World Economy

IN recent years many prophets have arisen who hold that gold has outlived its days and that its monetary use is now an anachronism. These prophets include well-known politicians, economists and businessmen. Some of them have called it a joke that metal should be dug up at heavy cost in Africa and elsewhere and shipped to the United States of America only to go underground again at Fort Knox. Others have claimed that all the gold in the world could be sunk in the ocean without anyone being the poorer. The fact that you have invited me to address you on the future of gold may perhaps reflect the fears caused by these various predictions. At present the prophets' taunts show no sign of coming true. The demand for gold is greater than ever before, although stocks held are the largest in history. Nearly all governments have gone to great lengths to suppress any demand that might be made by the public; they have reserved to themselves the right to hold gold and have lost no opportunity of satisfying their own demands. Where the public has been allowed to buy gold, the demand has proved impressively strong. In India the price of gold equals about $82 per fine ounce, having been $90 earlier in the year; in Egypt $65 to $70, after having been $87, and elsewhere it is even higher. In Palestine, for instance, the golden sovereign is traded at about £5, equivalent to $86 per fine ounce, having been nearly £6, equivalent to some $100 per fine ounce, earlier in