Hi Frank!

Thanks for your comment. I didn't delve into too many definitions, but rather linked to other articles/media that explain my points well. That said, I did highlight the relationship between monetary base, money supply and credit. ".... the monetary base expands into a country’s money supply (M1, M2, or M3) through the creation of credit in the banking system..." Regarding volatility, gold is priced in a market - as such, why would you expect it to be stable? Regarding gold as money, it is not considered legal tender officially by governments, but rather unofficially by the people - as it, and it alone, best contains all the properties of money (as highlighted in the Greenspan link). So, its value as money is derived from its unique qualities and perception as money by people the world over. Thanks for your comment!