I'll go real slow so even you can understand.
In 1900 Gold was $20/oz. Hold Specie or Paper your choice.
If you hold Gold that ounce is now worth $510.
If you hold paper that $20 is now worth $1 due to debasement.
Everything else is idle chatter.
Silly strawman. No one in his right mind would hold cash under his matress for a hundred years. When you account for the effects of inflation, that $510 return has still lost you money, because that $510, after fees, is less than the inflation-adjusted purchasing power of the original $20.
Any other investment --- stocks, bonds, real estate --- would have gained you money.
I have no problem with trading gold if you know what you're doing, although it's a bit reckless for my tastes. But holding gold is crazy -- the longer you do it, the more money you lose.
"In 1900 Gold was $20/oz. Hold Specie or Paper your choice.
"If you hold Gold that ounce is now worth $510.
"If you hold paper that $20 is now worth $1 due to debasement."
Which means that ounce of gold is now worth $25.50 in constant 1900 dollars.