The problem with the gold standard is that there is just too much paper printed to make any coralation..

The 28,000 tones of gold is only worth 785 billion @ todays $865 / oz

I think if the US had all of the 28,000 tones rather than only 8,000 of those tones it would still amount to about 1 tone of $100 us bills to the oz of gold.

The US gold reserves are only woth about 250 billion in todays prices.... just enough to cover the Fannie May backing...LOL

There is simply too much paper in circulation to have any gold backing the paper.

One ohter thing to consider.... for those wishing to hold physical gold..... The banks are the largest holder of gold.... therefore aquiring physical gold may soon become impossible.. without huge price moves.... Individual holders will have to be provided enough incentive to sell it, and that may take a quantum leap in price.

JMHO