With gold trading at $2,752 per ounce (as of January 28, 2025), discussions about Trump's potential return to the gold standard have taken on new significance. The precious metal has seen substantial gains since Trump's election, reflecting growing market uncertainty and renewed interest in monetary policy reform.
During his first term and earlier campaigns, Trump expressed support for the gold standard, stating in a 2015 GQ interview that "Bringing back the gold standard would be very hard to do, but boy, would it be wonderful. We'd have a standard on which to base our money."
Major Challenges Ahead:
- Current U.S. gold reserves ($489 billion) represent only a fraction of the needed backing
- Total U.S. money supply exceeds $20 trillion
- Gold price would need to surge from current $2,752 to approximately $27,000 per ounce
- Gold-to-silver ratio currently at 91.49, indicating historic imbalances in precious metals markets
Steve Bannon, Trump's former chief strategist, stated on his War Room podcast in December 2023 that he believes Trump could potentially abandon the Federal Reserve and reinstate the gold standard during his second term.
The Heritage Foundation's Project 2025 included a chapter about the Federal Reserve written by a former member of Trump's 2016 transition team, suggesting a return to the gold standard. While Trump has publicly disavowed Project 2025, its creators claim he is privately supportive of the initiative.
Fed Chair Jerome Powell previously warned Congress in 2019 against returning to the gold standard, stating it would conflict with the Fed's mandates of maximum employment and price stability.
Note: This article is based on publicly available information and statements from the provided source materials. Market data as of January 28, 2025.
