Questions about Knowledge and Gil

[Dyn Romadus]

Copper/Silver converts to 1 gil. Gold = 1.5 to 1 gil. 1 platinum = 5 gil.

This is for non-magical items. Magical items are equal to gold for gil.

Could you explain this in a little more detail?

does this affect starting wealth at higher levels in some way? I don't get where this would apply.

Sorry to ask but im Relatively new to FFD20 and am just curious