This is a totally off-the-wall theory, but I wonder if Rumpelstiltksin is trying to bring back Baelfire from the afterlife.
I think this is possible, I think Baelfire is already dead because he went to a land without magic centuries before the dark curse was enacted.
Oh no, let it not be so! I’m sure a lot of the fandom would go into permanent mourning. But we ‘ve seen no evidence that he ‘s dead, just that he doesn’t seem to be in SB and Gold hasn’t been able to leave to search for him–yet. Gold doesn’t think he ‘s dead; otherwise he wouldn’t have fallen for August’s scam.
I’m guessing Gold’s going to use this magic to locate Bae and transport himself there, after which he’ll retire to Florida with his now-intact family and spend the rest of his years sipping mimosas on the beach in his gold speedos.