Gold Is A Trustworthy Medium Of Exchange.

Since all the gold that was ever mined still exists and can potentially be in circulation as a medium of exchange if its highest value is as a medium of exchange, then relatively speaking, the incremental increase in the gold supply - the stock of money - will never be very large.

Apart from the fact that a gold standard prevents governments from inflating, gold should not scare the Friedmanites.

In addition, whatever the stock of money is, that is ideal since prices in a free market are relative. Which means that even if there are many uses for gold in addition to its use as a medium of exchange the relative prices in the economy simply reflect that.

Since trustworthiness is the 'supreme instrument for the prosperity of the world' gold as the international medium of exchange is the best means.

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