What would happen to price of gold if Trump manages to put us back on the ‘gold standard’ backed currency somehow?
It depends (always the answer, right?)
The issue currently is that it is believed that the current world gold supply is oversubscribed. That means there is paper that has been sold, the amount of which in ounces is many times the amount that actually exists.
On top of that, it is also believed that where there is physical gold, some of it actually consists of Tungsten with gold on the outside in varying thicknesses.
When Reagan challenged the assumption that we’d always be at war with Russia, the key question he asked was ‘How big is their economy - actually.’
Same applies here - how much actual gold is there in the world?
I suppose that we as a country could unilaterally go to a Gold standard. A Gold standard currency system would then be up against a world of fiat currencies. I would think it might end up stabilizing the entire world currency system on that very hard peg.
There would be some instability to start, for sure.