Watercressed comments on Harry Potter and the Methods of Rationality discussion thread, part 26, chapter 97 - Less Wrong
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Hypothesis: The muggles don't possess much gold. Most of the huge stacks of gold in places like Fort Knox are clever magical replicas, and have been for a very long time. Any wizard can easily see through the ruse, but the muggles are clueless.
How do we have gold that we use as a conductor? Perhaps when a muggle handles fake gold, it gets magically swapped with real gold from a small supply elsewhere. Or else, maybe fake magic gold is a really good conductor.
Perhaps the only difference between fake gold and real gold is magical--if there's a ritual that permanently transfigures a rock into gold, people can switch that with the gold in vaults. Of course, no one in the magical world would accept transfigured gold as payment.