The implausability of a gold standard

I've been reading a decent amount of Hayek lately, and as a result, I keep thinking about the gold standard.


And then I run across this article that says the total amount of gold mined in 2007 was $12B. $12B isn't nearly enough gold to sustain a precious metal money. The GDP of the world was about $65 trillion and grew by 5.2%. If we take the rough numbers, this means that global GDP grew by about $3T. For a commodity money to have a non-deflationary impact, the gold mined would have to be of the same value as our overall GDP growth. In other words, gold would have to be 250 times as valuable as it is today for it to be able to match our rate of GDP growth and avoid deflation.

Money is given value through acceptance, not rarity. As the U.S. government only accepts U.S. currency for tax payments, and not gold, this gives U.S. currency value. In a fiat money system, acceptance of a currency for taxes is what gives that currency its value.