Not really? Adjusted by inflation it's very volatile and not at all stable. Gold now is worth ~7x more than in 1970 but 25% less than in 1980, yet 4x more than in 2000 but still less than in 2011... There were some periods since 1970 where the (CPI adjusted) price of gold was relatively stable but that's certainly the exception and not the rule.
> but it's the most stable denomination of value that exists
You might use oil instead? It's not that much more unstable than gold.. Or wheat?
It goes up and down, but it's the most stable denomination of value that exists. Yes?