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Gold-Standard Return Sought by Republicans ‘Unlikely,’ WGC Says

A bid by some Republicans to return the U.S. to the gold standard is unlikely because of a lack of international agreement on the matter and insufficient supply, according to the industry-funded World Gold Council.

Annual output growth in gold “may not necessarily match the appropriate growth in the monetary base,” David Schraeder, a spokesman of the London-based council, said today in an e-mailed response to questions.

Drafters of the Republican Party’s 2012 platform called for the creation of a commission to “consider the feasibility” of a return to the gold standard “to set a fixed value” for the dollar, according to a 60-page draft of political positions and principles that will be submitted for adoption when the national convention begins Aug. 27 in Tampa, Florida, the Wall Street Journal reported.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editors responsible for this story: Steve Stroth at sstroth@bloomberg.net

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