- Circulation once occurred spontaneously in the free market. But when the government makes it impossible for gold to circulate, then circulation is replaced by hoarding and speculative churn.
- In a free market gold standard, hoarding gold causes the interest rate to rise until it becomes attractive to lend gold again. In a government-imposed dollar standard, this cause-and-effect mechanism is absent. No amount of hoarding dollars will effect any changes in dollar interest rates.
- A yield on gold matters and is integral to using gold as money again.
For further details see:
Why A Yield On Gold Matters