|COMEX Registered Gold 12/20/2013|
Really, Gresham's law is about price controls on commodities, and "price control" is all about reconciling a number, i.e. an idea, with reality. Reality stubbornly slips through any attempt to bind it in an inky net.
Gold is an alternate store of value to contractual devices, like dollars, stocks, or bonds. "Money", is really a way to organize (or bind) people's time and energy and thoughts. People's agreement to be bound to the system is what makes a dollar valuable. Prices are currently attached to precious metals through markets that are easily manipulated by the beneficiaries of the monetary system, but the mass of people, especially in Asia stubbornly refuses to believe that numbers are valuable.
What happens when the USD denominated gold market breaks? That's a pretty huge glitch in the matrix.