In this article, NPR interviews James Grant, the Wall Street publisher of "Grant's Interest Rate Observer." Regarding the gold standard, Grant observes:
The idea that gold has a fundamental value "is deeply rooted in all of us," Grant told us. "There's a few universal things. Sex, mathematics, music, gold — all these things are universal."Read on ...
Because gold is scarce, the gold standard keeps governments honest, Grant said.
If you're not on the gold standard, the government can print as much money as it wants. That can cause inflation: The more dollars that are out there, the less each dollar is worth.
On the gold standard, money isn't something you can just create out of nowhere. It's something physical. Constant.