Those who hold gold assets are typically holding them as a way to stabilize their portfolio against unexpected economic downturns that can wipe out the value of stocks in a matter of weeks, days or even hours. For many, the purpose of having a gold IRA is to achieve long term stability by turning to something other than the often volatile dollar. This, Republicans say, is a thought process they understand. In 2012, GOP presidential candidate Mitt Romney has hinted that a return to the gold standard is something he is interested in pursuing, a fact which is music to the ears of those investing in gold today. If this were to happen it would strengthen their position and quite possibly lead to a sharp uptick in gold's value at the same time. There are many reasons behind the philosophy of returning to a gold standard, but perhaps the biggest one is a fear that if this is not done, inflation could rise at an incredible rate and cause consumers to suffer on a broad scale.
A recent article by David J. Lynch of Bloomberg noted, "Since the September 2008 onset of the financial crisis, the dollar has lost 1.1 percent of its value on a trade-weighted basis."