Yes, a gold backed currency is possible in the modern age.

 EVERY FIAT CURRENCY ENDED IN BEING WORTH 0

FIAT CURENCY IS LOVED BY POLITICIANS

This past weekend I listened to Warren Buffet, who claimed that gold is not viable in a modern economy. He supported Central Bank digital currency, even though he admitted it would give governments unlimited power over every aspect of life. He believe CBDC would be faster and more convenient.  He also failed to mention that it could be diluted in value on a daily basis without any control. 

Only currency with firm backing can be a real store of value and only such a currency can maintain a sound economy. 

I do believe a gold backed currency is not only possible, but it is the best solution to the crisis that is soon going to engulf the western world. I also expect such currency will be introduced at some time in the future.

For such a currency to be accepted, it cannot be the creation of any one nation, it will need to be a joint effort by a group of nations, the more the better. This is how such a sound money system could work in the modern world.

First this currency would be created for international settlement and commerce. Every nation could still use the currency that is in use for domestic commerce and even for international commerce if accepted. I suspect that it would soon be unacceptable.

This new currency, we will call it UNIT, could only be created with the deposit of gold into a system of banks and bullion storage that would exist in all participating countries. For each ounce of gold, lets say we could receive 480 UNITs, of course these values would need to calculated. These UNITs would represent real gold and could be exchanged for gold, if one should desire. This could be a paper currency, or an electronic deposit, it could be transferred electronically, just like digital currency. It would have all the characteristics of modern trading, except it would not be controlled by any one government and no units could be created without a equal deposit of gold. The audit and control would be facilitated by a board from the participating countries.  

If someone wants to have UNIT they would have to purchase gold in their currency then make the deposit of gold and receive the UNITs. If someone wants to exchange physical or paper UNITS for electronic, the paper UNIT's would be destroyed. The idea is that there would never be more UNITs  in existence whether paper or electronic than a corresponding amount of gold on deposit.

This would eliminate monetary inflation, it would soon require nations to be fiscally responsible, or they would soon run out of gold. It would lower interest rates to borrowers, because it would not include the need to account for the declining value of currency. Lenders could be assured that their loans would not be repaid with depreciated currency. 

It would lessen abuse by governments and central banks, force financial responsibility and would create real sound money and a solid store of value for workers and savers.

I do expect we will see some sort of such system in the near future, it could be participated in by all nations, or it will soon require non participating countries to make drastic changes in their fiscal policies. It will most likely create a flight from fiat or fake currency to real currency.  It would be in the best interest for all.