"You never let a serious crisis go to waste. And what I mean by that it's an opportunity to do things you think you could not do before." - Rahm Emanuel

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[–]danuker 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

It is useful as money because of its scarcity, chemical stability (does not corrode easily), compactness, fungibility, divisibility (albeit less so than cash).

Suppose you own $100k and want to keep it outside the banking system, and any other paper assets like ETFs, because governments and banks tend to give you the sour end of the deal during crises.

Gold worth $100k weighs 65.4 troy ounces (2 kg). Silver weighs 6812.9 tr oz (212 kg). What's harder to hide and carry around?

Still, this could be a temporary situation. Gold is not 100x more scarce physically, which might mean either silver is undervalued, or gold is overvalued right now.