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Can Inflation Index Bonds replace gold as a safe investment....???

              India is the world's largest consumer of  gold , accounting for some 20 percent of the world's demand. In India gold is historically and culturally tied to the concepts of wealth and prosperity. The demand for gold has been increasing drastically in India which lead to a current account deficit of 4.3%.  Govt tried to reduce the import of Gold by imposing 75% import duty. But still the demand for gold is not reducing, so to curb this demand the govt introduced Inflation Index Bonds in this year's Union Budget. Inflation Index Bonds have been recommended in the Economic Survey Report of 2013. RBI soon going to issue the IIB''s on 4th June 2013 to protect the savings against the rising prices. The reason why these bonds are launched because Inflation erodes the purchasing power of money and people are investing in gold as a hedge against inflation. The advantage of IIB is that adjusts its interest payments depending on the inflation rate. As th