DislikedUnder precious metal backed currencies, currency is issued in relation to the amount of metals in holding. Precious metals are not an infinite resource. They can run out. The number of people in any particular country on the other hand keeps increasing. Under a metals backed system a shortage of currency becomes a real problem as it leads to recession and ultimately depression. That's why no one follows backing currency in metals. The alternative is dismal economic growth and extremely high unemployment.Ignored
When you think about it, beyond some nominal amount it doesn't matter how much metal there really is in circulation. People will be using electronic forms of payment anyway. The point is to be sure that they can redeem their £100 note for a microgram of gold if they wanted to, which is the ultimate check on inflation and debasement of the currency. As an added bonus, money will go up in value over time, so the pound you put away for your grandkids now will have more purchasing power when they inherit it, rather than the complete opposite as is currently the case.