Weird, I can't think of a single country that still issues one.
On the other hand, the dollar has lost 96% of it’s value.
My dollar is still worth a dollar. Maybe you're doing it wrong?
This is because governments will always try to pay for things with fiat promises rather than gold. It's Gresham's Law in action (aka "Good Money Drives Out Bad").
If I have 2000 fiat dollars and an oz of Gold, and I want to buy Oil (or Wheat or Rice etc) from you - I will always offer you the fiat dollars (the 'Bad Money' first). If you accept my dollars, that's great. But I would never lead with the Gold first.
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The Ruble Gold peg isn't the introduction of a Gold-backed currency. While people still accept Fiat, Gresham's Law forbids a fully exhangeable Gold-backed currency. However the peg does establish a floor to the Gold price.
This means that it's no longer possible (assuming efficient arbitrage) for the Gold price to be artificially suppressed below ₽5000 per gram.
Gold prices have long been suppressed/controlled by the issuance of synthetic (promissory, paper, IOU) Gold. That suppression mechanism should no longer work - as long as arbitrage is not somehow encumbered, and the Ruble maintains its current strength.
Weird, I can’t think of a single country that still issues one.
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Yes, exactly my point.
Could it be because it’s worth so much more than the face value of the fiat currency?
That goes for copper pennies too, and soon nickles won’t be make of nickle anymore either.
Your dollar has lost 96% of it’s buying power, that is a fact.
Gold has never gone to zero, unlike EVERY fiat currency in history.
So, yes, that makes gold the most stable monetary form of exchange in history. It is also a hedge against inflation. When inflation is low it tends to drop and rise in times of high inflation.
The whole topic of discussion is why Russia would tie it’s currency to gold? The question should really be, why wouldn’t they? What else would they back it with? Nothing?
They problem for us, is that this could also accelerate the demise of the dollar. The only reason we have gotten away with printing so much money over the years, is because of our reserve currency status. Which Biden is doing everything possible to destroy.
If Russia and China make a power play and back their currency with gold. It could cause a collapse of the last 4% of the dollar.
Who would want to use dollars backed by nothing, when they can use currency backed by gold.
There is a reason Russia and China have both been stockpiling gold.
What you're doing wrong is exhibiting circular thinking. A dollar = a dollar, yes, but the dollar is worth less with each passing day. So the dollar you use to buy you a loaf of bread today will only get you less bread tomorrow, and eventually, no bread at all.