I get it that gold is insurance against inflation. And, it's real money in an economic catastrophe.
My question is on behalf of the Anons who may have purchased some gold coins (but lost them in the lake). If we paid $1000 for one 1oz coin, and the US goes back to a gold-backed standard and values gold at $35/oz., that is quite a loss! I am not that is what will happen, but I present that scenario as part of the broader question: What would gold need to be valued at in our fiat US$ currency in order to be the backing?
Any Anons have a sense for the future value of a gold coin in the gold-backed dollar scenario? A lot of people have purchased gold coins hoping that they will revalue north of $20K or $50K to accommodate all of the fiat floating around. But I just can't see the elites letting people get "rich" so easily.
The problem with just "a gold standard", as has been shown since its inception, it is vulnerable to abuse.
A bi-metal system is much more robust, as these naturally pivot around an equilibrium.
Having said that, there are potential solutions to even go steps further and bind it to more precious metal types, or even assets.
To answer your question, there is no need for a "gold-standard", to make an revaluation of a tier-1 asset very interesting if not compulsory. since jan-1 2023 Gold to Banks are a tier-1 asset. Hence, the motions by CB's and other banks to acquire as much as possible.
At the same time, the casino, meaning throwing paper contracts at the price of gold and silver in order to suppress its price, is in sunsetting due to the fact that since jan-1, if you want to use paper contracts, you have to deposit the goods. So, many are no exiting the casino and trying to alleviate themselves from bad footing.
At this point in time, the number of tonns of gold the US treasury has, are valued against 35 to 45 dollars an ounce.
So, it is waiting for that one CB that goes into revaluation mode, the rest will follow, as it would signal an end to the "leaving the casino"- period. The FED is then the only one left. That is when GOLD shall destroy the FED, as the FED ......well ... turns out to be bankrupt.
Admittedly, the FED does not understand gold. They understand paper.
However, it would alleviate some of the pressure on the US debt. I would anticipate an even bigger revaluation, since the debt is, eh ... out of bounds. But that would case inflation on a scale beyond the thermometer I have.
Imagine. First revaluation happens to a level of say: 2000 an ounce. That is only to recognize the reality, to square the books. Depending on the amount of gold retained ( 8000 tonnes? proven reserves under ground?) the Credit of the USA may get a boost. However, going beyond that ..... a revaluation to 10.000 or 20.000 FRN per ounce, would totally destroy the FED and the FED-note. By the way, it would also destroy the Euro and the Yen.
It would also impact the prices domestically. It may even cause an inflation beyond measure. Afterall, the value would then be 450 times lower than currently is the case. It would be like having bought bitcoin at 65.000 and finding it went back to 144 dollars. 30 trillion,all of a sudden, becomes valued at 67 billion or so. I guess it would spell doom to the FED.
The USA is quite a remarkable country by it's resilience and recuperation ability.