Does a Gold Currency Make Sense?
Gold coins have circulated for thousands of years. Using gold in coins for payment purposes has a great combination of advantages—durability, portability, standardization, relative ease of production, and others. One limitation of using gold coins for commerce, however, has been that it was most practical for face-to-face transactions. Another limitation is that the relatively high value of gold meant that it was not that practical for small transactions.
As a consequence, silver also became a popular metal used in coins. Gold and silver coins had the advantage over other
