A lot of monetarists believe that a currency must be based on a tangible (natural) object that has a stable value, such as gold. The underlying flaw with this theory is that with things like gold, there is a finite supply, and shifts in market demand could/would create wild fluctuations with the value of said currency. You could actually see daily inflationary or deflationary changes in prices simply because of the change in purchasing power of said currency. We haven't seen much of this trend in the price recently (albeit, we are running a reverse correlation of the price of gold and inflation lately) but imagine what would happen if we go back to a gold based currency how the demand of the commodity would effect price. It would actually hurt gold investors too because the rise in gold would be directly reflected in the purchasing power of their dollar, and thus, would make an increase flat with their purchase.
I agree completely, it bears repeating.