Why is gold useful and why is it always useful as money? Gold is rare and not easily counterfeited. It does not rust as it is imperishable. These properties make gold a good store of value, a medium of exchange, and a unit of account.
Comparing the Two – Gold and Silver Why is gold useful and why is it always useful as money? Gold is rare and not easily counterfeited. It does not rust as it is imperishable. These properties make gold a good store of value, a medium of exchange, and a unit of account. Therefore, gold is easily tradable with a narrow spread, meaning it has a small price between the bids and ask-the prices to buy and sell. Gold is therefore the ultimate liquid asset, a luxury, and is why gold is money Silver has nearly the same characteristics compared to gold. However, with a few minor exceptions, silver less valuable to gold. Approximately 60 ounces of silver is equivalent to one ounce of gold. Why carry around 60 ounces of silver when you can carry one ounce of gold? Gold cannot tarnish and silver will tarnish. However, it is a good asset on silver. That silver does tarnish, a little, is actually a benefit for silver, because it creates additional industrial demand. The other important aspect to take into consideration is that silver was more frequently used for industrial purposes and consequently this strengthened its value. For example, this metal is used in plastic industry, photography, digital cameras, laptops, coin minting, and so on. There is one more important plus of silver as an investment option. The affordability if compared to gold that can be only purchase by rich people. Anyways investing on either gold or silver is a good way to hedge against calamitous events and inflation. Which is the best investment potential or multiplier, gold or silver? Most people purchase silver because they say it has a greater multiplier than gold. They say that silver has a multiplier of 11 to 1 while gold only had a rate of 5 to 1. Laszlo Forgacs an Independent Research Analyst, Investor and Gold Enthusiast. Have many years of experience in compiling and analyzing the pertinent data and facts relating to the world's largest and most stable gold producers.
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