Steel can be manufactured. Gold cannot. It is also difficult to destroy. Practically, the amount of gold in the world is fixed – some is available to trade and some is buried. So, it makes a decent “storage mechanism for value” otherwise known as money.
Fluctuations in the bread/gold ratio are likely due to weather and farming conditions more so than fluctuations in gold.
Carrying 300 loaves of bread in your backpack would be cumbersome with steel.
At $1000/oz, a millionaire would only need 63 pounds of gold to store all his wealth. At $2/pound, a million dollars of steel would weigh 250 tons.
