I didn't say there are markets that use gold as the quote currency. Relative exchange ratios is a concept of non/pre-monetary economies.
In a barter economy there would be prevailing rates of exchange between every pair of goods: i.e. 25 bananas for one chicken. So, if an ounce of gold can typically be exchanged for a nice suit, then a paper note that's redeemable for an ounce of gold should be able to purchase a nice suit.
I didn't say there are markets that use gold as the quote currency. Relative exchange ratios is a concept of non/pre-monetary economies.
In a barter economy there would be prevailing rates of exchange between every pair of goods: i.e. 25 bananas for one chicken. So, if an ounce of gold can typically be exchanged for a nice suit, then a paper note that's redeemable for an ounce of gold should be able to purchase a nice suit.