Also, when real coins are involved, there is no interest (given or charged), nor are there taxes.
These are excellent features.
After all, the amount of gold available on the planet is finite and hence interest can be only paid to a very limited extent, if that.
Actually, though, it is not the amount of gold "available on the planet" that establishes the price. It is the amount of gold which can be recovered and sold into the free market. For example, there are well known gold deposits in Indonesia, but these are very difficult to access. The gold can be mined and refined, but getting it out of Indonesia is a troublesome process.
The amount of gold which is recovered and refined and sold in the market has been increasing steadily over time, at about 2% per year on average for the last few thousand years.
Further to this point, the universe is infinite in all directions. This planet is not the only one we have access to presently. So I wouldn't count on this "finite gold" idea forever.
Regards,
Jim http://www.ezez.com/
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