Gold can never replace fiat currency not money. Gold used to be money just as seashells used to be money. Money is a means of exchange and a temporary holder of value until a transaction can be completed. Even though people are not gonna be bringing gold bars to buy vege or stop using alipay. Gold can still be used to pegged a currency which was the case until the 70s when Nixon abandoned the gold standard. So my dear Mr LNG Ukrainian Radar operator Intelligence officer, gold is actually very important if the world decides to go back to the gold standard instead of the free printing dollar standard.
No. Gold can never replace THE CONCEPT of Money. Not just fiat currency.
There are two issues with gold.
1.) There are only Limited Amount of Gold in the world.
2.) 70% of gold are owned by private individual like you and me
You cannot peg gold to any currency because of 1, and You cannot control the value of gold because of 2. And that's the reason why gold felt out of favor in 1970.
In case you are too stupid to even realise. You cannot peg gold into any currency because you can technically do it only once and every subsequent time you change the exchange rate you will need to redistribute that gold to expand the use, to otherwise you can be limited to how many golds you have in your government procession and how many were exchanged to the value. IE. You cannot say today gold worth 1 ounce to 1000 dollar (or any denomination today and 1 ounce to 2000 dollar tomorrow without redistribution of the entire stock of the gold you are holding) You would have to wait until said value being exchange back into the bank before you issue another round of Gold Backing currency.
You cannot control the value of gold because of the 170000 tons of gold there are in the world, 90,000 tons were used in Jewelry and 40,000 are on commodity market being trade daily, only around 30,000 tons of gold were owned by government worldwide, which mean the private owned value are more than the government now, which mean unless you now go confiscate the gold in your mother's ring and grandma necklace. The government,
ANY government, will not be calling the shot, it will be public who are calling the value.
As a scarce natural resource, how much gold is in the world today? Read this article to learn how much gold exists by country.
rmegold.com
So no, My Oil and Gas, you cannot use gold as an exchange currency, aka money. You should stick with your han job.
