Thu, Aug 22, 2013 - 10:10am
After a much publicized drop in the price of gold and silver earlier this year both metals are heading higher again. While gold and silver are considered precious metals (along with platinum and palladium) as well as monetary metals, there are significant differences between the two.
Here are twelve key differences between gold and silver:
1. Central Banks Don’t Hold Silver.
Gold and silver have long been considered money. Central banks, however, do not hold silver. All central banks hold gold as part of their reserves. Recently, central banks have been net buyers of gold. The Chairman of the Federal Reserve Ben Bernanke, however, refuses to admit that gold is money in this exchange with then Congressman Ron Paul:
Is Gold Money?
Central banks own nearly 20% of the world’s known gold. Because of this they have enormous leverage over the physical gold market as they can buy, sell, lease, hypothecate, borrow and lend gold among themselves and with third parties. Central banks have no such control over the physical silver market.
2. The Silver Market is Much Smaller than the Gold Market
Edited by: Smaulgld on Nov 8, 2014 - 5:08am