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.”