Why buy silver as a monetary asset

Watch the full 28-minute video at http://www.goldmoney.com/rallo-macleod-interview. In this video Juan Ramón Rallo, economist and university professor in Madrid, and Alasdair Macleod of the GoldMoney Foundation talk about silver's monetary role.

Rallo says that Silver used to be a monetary asset in the past and still has a role for lower payments, however, he doesn't see as strong monetary demand for silver as there is for gold -- making it riskier in the short term as shown by its higher volatility. However, if more people decide to put their savings into silver, the silver market would become more liquid and thus more stable.

This interview was recorded on November 15 2011 in Madrid.

Category:

News & Politics

Tags:

• silver price
• buy silver
• monetary system
• fiat money
• Juan Ramón Rallo
• GoldMoney Foundation
• Alasdair Macleod
• Madrid

[shankthatup]

Yeah thats true there is 2-3billion ouncez of gold 700mil of silver

[needtoalwayslearn]

@ArrowTheGreat Where did you get this information from ? Any statistics ?

[ArrowTheGreat]

@needtoalwayslearn Actually for the first time in history there is more investment grade gold then silver in the world. Because silver has many industrial applications, but gold does not.

[needtoalwayslearn]

@luvbeingfree You can google their differences, and figure out how one is better than the other in specific curcumstances.

But you have to also consider the marginal utility: there's much move silver than there is gold.

[luvbeingfree]

Question. What properties do gold have that silver does not? It seems to me that silver's properties are even more impressive making it a better form of money.

[newmankevin44]

@TheSilverlover999 you make some great points your self. between 1920 and 1964 all countries starting with china and ending with the us went of the silver standard. the market was flooded with cheap silver for industry so they stopped mining it cause it was not profitable. in 1950 we had 10bil oz of above ground silver today we have 1bil. they used up and threw away the monetary silver in industry. there are 3.5-4.5 bil oz of above ground gold cause people never threw it away they recycled it.

[zalida100]

@0muffins0 While gold and silver have the possibility of increasing or decreasing in purchasing power, paper has never increased in purchasing power. So even if it's 50/50 chance of metal increasing or decreasing, Paper has pretty much a 100% chance of decreasing. My guess is that metal is a better bet to hold onto for a while.

[zalida100]

Excellent interview - as usual. Thanks very much

[TheSilverlover999]

@newmankevin44 Very well said. and don't forget Silver has many uses too compare to Gold and it is consumed like Oil. When you have patience Silver is the right one for you coz Silver is a long term investment. Just buy more when Silver price goes down and Sell a few when silver goes up.

[newmankevin44]

they will choose silver in the end cause they are going to have to cash the 1oz coin of gold to buy something like groceries.... hmm i wonder what they would as change for gold? silver nah it tarnishes. silver will be the winner and since there is less of it above ground than gold it will win even more than gold. oh and silver is risky if you don't know how to trade it otherwise those big price swings will make you a lot of profit. anyone who advocates gold over silver knows little about silver.