I understand this much: there is some gold and other actual metal located in a vault, sitting there as a symbolic standard of wealth, worth, value. Everyone stakes a claim to it, and they exchange that claim to others in substitution for something else (dog, rifle, gas in the car, baby-sitting).

Blanc

Actually, there is no connection between the gold and our money. I.e. you cannot take US $ to Fort Knox (or any other government location) and get gold for it. This is why some posters have referred to "fiat money" - the $ is money because the government says it is. Reynolds