Yes, from the dawn of civilization, government backed fiat currencies have always trumped precious metals.
Why is she wrong?
The dollar is backed by the world's largest, highest funded, most technologically advanced military in the history of the earth - including allies such as all of North America and the EU.
Who backs gold?
Gold has intrinsic value: it is valuable because it is gold. Given a market and a strong demand it can be more valuable (as it is now) or given a market with weak demand it can be less valuable but gold always and forever will be a valuable metal. It doesn't actually need to be backed, unlike a fiat currency which, in the dollar's case, is backed by the "full faith and credit" of a bankrupt nation run by fools.
The dollar is backed by the world's largest, highest funded, most technologically advanced military in the history of the earth - including allies such as all of North America and the EU.
So its the strongest military mankind has known plus its trade partners vs. no one. Got it.
Would the US go to war to assure the price of gold? Would they for the dollar?
Intrinsic value means that it has value in itself. It doesn't need one single man with a rock to "go to war" to ensure its worth: it is valuable because it is rare, resistant to decay, and because people have always desired to have it. It has been considered valuable in almost every civilization advanced enough to care about things beyond mere subsistence. To repeat: it does not need an army or a government to back it in order to make it valuable: it is valuable already provided there is a market which will trade in it.
The dollar, on the other hand, must be backed by something because otherwise the piece of cotton the bills are printed on is useful only as a Schumer-hits-the-fan toilet paper supply. You are essentially using Monopoly money in the great game of Global Economics: Keynesian Edition
I think he's yanking your chain.
Intrinsic value means that it has value in itself. It doesn't need one single man with a rock to "go to war" to ensure its worth: it is valuable because it is rare, resistant to decay, and because people have always desired to have it. It has been considered valuable in almost every civilization advanced enough to care about things beyond mere subsistence.