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GOP to Examine a Return to the Gold Standard?

The Republican Party is considering setting up a commission to examine the pros and cons of going back to the gold standard. Of course, these pros and cons are already well known and I suspect this move is nothing more than an attempt to appease Ron Paul supporters. I find it highly unlikely that either political party or their pay masters would ever actually do such a thing. At best, it would be a fractional gold standard.

Still, the fact that a return to the gold standard is even being discussed is bullish in my opinion, as gold would need to be revalued to somewhere around $15,000 per ounce in order to cover all of the fiat dollars floating around. Add in the fact that gold’s true inflation-adjusted high is around $9,000 per ounce and we start to get a better feel for the potential of this “barbaric relic.”

By | 2017-03-23T14:06:25+00:00 August 25th, 2012|Gold & Silver Commentary|

About the Author:

Jason Hamlin is the founder of Gold Stock Bull and has been investing in precious metals for over 20 years. Jason spent nearly a decade in analytics for the world’s largest market research firm, before finding success investing full time. He launched Gold Stock Bull in 2005 and turned his focus from helping fortune 500 companies to helping individual investors. Jason is a student of Austrian economics and a proponent of cryptocurrencies such as bitcoin and ethereum.