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Damn straight and that's what makes it so vulnerable to a loss of confidence. During the years of gold standard (before Nixon took it off) the dollar was stable for a long time and inflation was very low.
Every currency in the world was gold backed purely by virtue of the fact that everything was loosely pegged to the US dollar.
Now everything is loosely pegged to the US dollar just as before, however the US dollar is pegged to nothing (its 100% fiat currency) and very vulnerable to a loss of confidence. So hence, its very sensible to own some commodities in todays environment...... savvy investors recommend an allocation of at least 10% of your investable assets to precious metals such as gold, silver, palladium etc.
It's worth noting that when Nixon took the USD off the gold standard in 1971, gold went from $24/oz to over $840/oz in a 10 year period - 3500% gain.
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