World Bank president Robert Zoellick has called on bickering G20 nations to bring gold back into the global monetary system as an anchor to guide currency movements.

Ahead of a Group of 20 summit this week in Seoul, Zoellick said an updated gold standard could help retool the world economy at a time of serious tensions over currencies and US monetary policy.

He said the world needed a new regime to succeed the “Bretton Woods II” system of floating currencies, which has been in place since the fixed-rate currency system linked to gold broke down in 1971.

The new system “is likely to need to involve the dollar, the euro, the yen, the pound and a renminbi (Chinese yuan) that moves towards internationalisation and then an open capital account”, he wrote in Monday’s Financial Times.

“The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values,” Zoellick said in a commentary piece.

“Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today.”

http://money.ninemsn.com.au/article.aspx?id=8120784

Sydney, Nov 8, 2010 (ABN Newswire) – The “Original Gold Bug”, James Dines will give a two hour presentation at the Gold Symposium on Wednesday, November 10 at 2pm at the Amora Jamison, Sydney. In May 2009 Mr Dines became the “Original Rare Earths Bug” predicting a steep rise in their stock which in fact took place in much the same way his predictions about gold were right, both when to buy and when to sell. His Dines Letter is a sought after publication globally, his rare live presentations attract huge audiences.

The Panel Discussion that follows the Dines media opportunity features three north American experts. President and CEO of Rare Element Resources, Don Ranta, Jeff Phillips of Quest Rare Minerals and Michael Hundson, founder and member of the board of Tasman Metals will discuss the global fascination with the rare earth industry. As China controls the bulk of the market, the panel will discuss how this impacts on the rest of the world.