Even with a gold standard, you&#x27;re usually not using gold coins directly (if only because it&#x27;s hard to make coins for smaller denominations with it), but rather bank notes that are guaranteed to be redeemable for gold (as long as you don&#x27;t try it out).<p>cf. <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Gresham&#x27;s_law" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Gresham&#x27;s_law</a>