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gwern comments on Harry Potter and the Methods of Rationality discussion thread - Less Wrong
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No, that wouldn't work. In MoR, the routineness of coining Sickles implies that it's routine to coin ordinary gold into Galleons; if the coinage were irreversible, then you would see Gresham's law start to operate.
Ordinary gold would be more valuable then an equivalent weight of Galleons because you could at any time turn the gold into Galleons but with ordinary gold you have all the other decorative and magical uses of gold available. As Galleons are created and not destroyed, ever more inflation of Galleons and deflation of gold would happen.
(Have you ever bought funny money, like the Mickey Mouse money at Disney World? The Galleons would be like the Mickey Mouse money, and gold like regular dollars. Except worse.)
I am edified and grateful for it.
(Magical) code is law, but the laws of economics are more akin to laws of logic than legal laws - try to bend them, and you'll either accomplish nothing or it'll bite you somehow. You need subtler tactics than just unmeltable coins or disappearing specie.