Australian Gold Reserves sold off under Howard Government.

Because these metals tend to hold their value when currencies do not. When inflation goes up, gold usually goes up with it (or beyond). Money in your hand becomes less valuable as time passes. Gold either doesn't, or at least holds better than cash. You then sell the gold for specific things when you need the specific thing. So you only briefly have the 'worthless' cash for a specific transaction.

- - - Updated - - -

That depends on the politician and their ideological economic worldview.

In absence of politicians and the political system, who might be trusted with a country's long-term assets?

 

But you can't put gold and silver together and get little baby pieces of gold and silver. Even if you match heads to tails!!!