Great article and I agree with almost all of it but one thing your misunderstand about using commodities such as gold or silver is that if there is a permanent destruction of some of the commodity the market adjusts by lowering prices because people value the commodity more. Businesses will take a loss because they have investments in inventory but the average person will be better off. This means your wage may go down but your real wage, the amount of goods you can buy with a given unit of currency, will go up.

Your Hypothetical scenario of the 1% owning all of the gold is impossible because all humans have wants and needs so gold would constantly be flowing out to businesses and people that serve the 1% which in turn will flow out from the businesses through wages and people purchasing lower cost goods and services which will push the gold along in the same manner until the poorest person in society gets the gold.

Also due to increases in technology we will have a near infinite amount of metal ex. mining asteroids or other planets.

The only issue with physical commodities used as currency is that they aren't infinitely divisible. So if you have a huge expansion in goods and services the commodity could deflate to the point where lets say clothes are .0000001 oz of gold. Which isn't a bad thing it is just inconvenient because the market would be able to adjust in a sufficient time span to not be a jarring shift.