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Questions about tying dollars to gold and/or silver

1) How can the dollar have a set value when the spot price of precious metal changes daily?

2) Does the amount of dollars in circulation increase when the spot value increases or is the dollar a direct representation of the amount of a commodity ($1.00=1 ounce of silver)

3) If the amount of dollars in circulation increases when the spot value increases how do fractional increases in the value of silver add to the circulation? (how can you add 1/2 dollars or 0.66666 dollars to the system?)

4) If the dollar is a representative of a commodity how do merchants price goods if the price changes? Would all merchants require a commodities merchant even if there was a paper dollar backed by commodities?

5) If the dollar was tied to commodities how would anyone know what value the commodity was worth?

6) If the prices of commodities are still artificially manipulated by COMEX and paper markets how can the value of the dollar reflect the true value of the commodity it represents?

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Huh?

If you fix the value of the dollar to gold, then there is no such thing as a "spot value" anymore. However , you are correct in that the true value fluctuates as a result of gold mining, silver mining, etc.

Remember that fixing the value of dollar to gold simply says that the government will account for all the dollars in circulation, that is, if you cash a dollar in with the gov't, it will provide for you in exchange a certain amount of gold. There still is gold that hasn't been exchanged for, and the government could still adjust the money supply by buying up some of that gold and reminting it; this is an appropriate use of excess, unused funds from tariff collection, corporate taxation, etc.

More extreme gold bugs will say that the actually tendered money should have the correct amount of gold actually embedded in it.