Actually, that's a reversed view. If an oz. of gold is worth more $, it's isn't the value of the Gold that changes. It's the value of the dollar. When our money is worth less, it requires more money to buy the same amount of gold. Does that make sense? Gold stays the same, it's the dollar that changes position. It's an example of inflation and de-inflation.
During the Gold standard, the "value" of gold, nor the currency could change. $20 dollars was worth 1 oz. of Gold. Next year, $20 = 1 oz gold. One hundred years later, $20 = 1 oz. Gold. That's the point of a currency standard... to have a stable knowable value of the currency.
With out the standard, $1,000 in the 1940s was 1/4th the cost of a newly built home, and now it's barely a months rent. The value of the dollar changes, because it's not based on anything.
Amusing, but very bad. By having the dollar based on the "oil standard", would mean that every dollar would be worth a determined amount of oil. This would mean the government would have to compensate every federal note (dollar) with oil. Do you think our government has roughly $10 trillion worth in oil? Of course not. If any enemy of the US wished to cause us economic harm, they could demand compensation by trading in US currency.
Example, we buy million in imports. If those countries demanded to redeem the millions of dollars they have, with oil, our government would be instantly bankrupt.
Or China, which has a trillion or so of our debt, could demand oil in payment, which our government could not do, and again, instantly bankrupt.
The value of the dollar will not drop, but crash, having no value at all since our government couldn't back it. Economic chaos would ensue.
