Stockpiling gold is extremely helpful if the standard is gold.
It reduces supply, which boosts the value of every other outstanding dollar. I boost everybody else's current purchasing power by increasing the real value of the dollar bill in their pocket by reducing the availability of gold, since the true measure of a bill is what goods it can purchase.
Not to mention, markets take note of the true availability of gold. Hoarding gold doesn't mean it is destroyed, and the market knows that in general estimation, because the market knows in general estimate how much gold is mined / stored / sold / etc. IE that gold can and will come onto the market, whether today or when I die, and the market prices accordingly.
Any currency backed by a gold standard when I hoard, will benefit over any nations not on a gold standard or specifically with a depreciating currency. I can buy more and more and more of their exports for the same dollar.
It reduces supply, which boosts the value of every other outstanding dollar. I boost everybody else's current purchasing power by increasing the real value of the dollar bill in their pocket by reducing the availability of gold, since the true measure of a bill is what goods it can purchase.
Not to mention, markets take note of the true availability of gold. Hoarding gold doesn't mean it is destroyed, and the market knows that in general estimation, because the market knows in general estimate how much gold is mined / stored / sold / etc. IE that gold can and will come onto the market, whether today or when I die, and the market prices accordingly.
Any currency backed by a gold standard when I hoard, will benefit over any nations not on a gold standard or specifically with a depreciating currency. I can buy more and more and more of their exports for the same dollar.