Ja. Spain was in deep trouble partly because they thought silver and gold were 'money'. No fault of theirs, everyone did then, (and some libertarians STILL thing that).
It totally distorted their whole economic system, and damaged much of their internal economy.
Almost anything that is portable and in short supply can be used as money.
Real wealth in an economy comes for the goods and service it produces.
Increase the amount of money be in gold sliver or paper money does not increase the wealth of a country in just inflates the money supply.
Normal Gold or silver supply only expands slowly, Spain and the gold and sliver increase at the time in one of the few example were its supply expanded very quickly.
Expanding the supply of paper money is much easier and has happen more often.
Last edited: