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If you make the money, i.e., print the paper and convince people to associate it with value, then money has no value in itself to you. But gold is nothing you p
by erikb 10y ago
If you make the money, i.e., print the paper and convince people to associate it with value, then money has no value in itself to you. But gold is nothing you produce. It's already there and people already associate value to it. Even another country who doesn't like you is willing to listen to your demands if you promise them gold in return. Therefore having as much gold as possible is one of the things that grand you power as a country. Other things are valuabe trade goods like oil, high tech, cars, etc. Again other sources of power are technology&science, knowledge, military, lots of people.