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So how do I go to the bank hand in my $10 and demand payment in gold? That is one 800th of an ounce. A speck of gold dust. 1$ worth of gold at $8000 and ounce becomes just as theoretical a creation as the Fed funny money we have now.

Keep in mind that an 800th of an ounce will typically be good for small purchases like a cup of coffee or a newspaper ($2 today).

If you want a paper money for smaller transaction ($0.20 - but why?) your gold foil strip could be 1 mm by 1 cm. Sealed in a nice clear hologram window.

Consider paper money with embedded physical gold foil of 0.1 gram (about what a silver dime is worth - ~$3). One tenth gram is a centimeter square, 1/5th mm thick (about the thickness of two post-it notes together).

Except that .1 gram is not $3 it is $28.248. When your smallest bill is a 30 you need to revalue your currency not just go to a gold standard. So what we need to do is issue "New Dollars" or "Gold Dollars" that are worth 10 old dollars. That way the penny becomes a workable monetary unit again. And the price of gold goes from $8000 to the ounce (which is an unworkable amount) to $800 and ounce, still high but at least a workable amount.

This would put the value of the dollar back to where it was in 1946 ($1 in 1946 would be equal to $11.04 today). And by locking the value in you eliminate inflation. That is both good and bad since there are times (like when a technological advance allows large growth in productivity) where you want to pump a little extra currency into the market.