During the "gold standard" era, banks did not keep gold on-hand unless required to for reserves or customer convenience. It was, and remains, a dead asset that earns no interest and generates no profit except for speculation and chance. The $400 gold of 40 years ago is now valued at $2,000 - 5-times the dollar value. But, it will not purchase 5-times more -- it will actually purchase much less -- and thus has a negative return. The common "gold-for-food" scenario is a false analogy since small scale real world examples show that barter and trade of necessities quickly overcomes any slight assumed value of gold or any other thing that is not immediately useful.