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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 is the founder of goldstockbull.com. He previously worked in data analytics for the world’s largest research firm, consulting to Fortune 500 companies globally. Jason eventually leveraged those skills to trade successfully full-time and after helping friends and family optimize their investments, he launched Gold Stock Bull and The GSB Contrarian Report newsletter. Jason is a cycles investor with a contrarian eye for identifying undervalued assets. He has built an expertise in both the precious metals and cryptocurrency markets. Jason believes in honest money, limited government, decentralization of power and enjoys studying alternative economic models.