Bernanke to Ron Paul: Gold Isn't Money

This was probably the best part of my day today. Listening to bernanke tell ron paul that gold is NOT money, it's an asset. Who is right here? Gold WAS money at one time, in fact gold and silver were the only money or means of exchange. Currently it is not recognized as money or a means of exchange, but it can be exchanged internationally for any currency in the world..soooo, would we say then that gold is a currency? And if it's a currency then isn't it "money"?

Then the bernank compares a t-bill to gold as being "an asset"...wait, a piece of paper showing you're owed more worthless paper is an asset? I'm not a gold bug, however, right there is my problem with stocks...
 

Paul: Do you think gold is money?
Bernanke: (pregnant pause) No.
It's not money?
It's a precious metal.
Even if it has been money for 6,000 years, somebody reversed that and eliminated that economic law?
Well, it's an asset. Would you say Treasury bills are money? I don't think they're money either, but they're a financial asset.
Why do central banks hold it?
Well, it's a form of reserves.
Why don't they hold diamonds?
Well it's tradition -- long-term tradition.
Well, some people still think it's money.
In the U.S. anyway, those people are wrong. Here are a couple reasons why