Ben Bernanke: (…long pause…) No. It’s a precious metal.
Ron Paul: Even if it has been money for 6000 years, somebody reversed that and eliminated that economic law?
Ben Bernanke: Well, it’s an asset. Would you say Treasury bills are money? I don’t think they’re money either, but they’re a financial asset.
Ron Paul: Why do central banks hold it?
Ben Bernanke: It’s a form of reserves.
Ron Paul: Why don’t they hold diamonds?
Ben Bernanke: Well, it’s tradition. Long term tradition.
Ron Paul: Some people still think it’s money.
Here's Mr. Bernanke answering a question by Texas Rep. Ron Paul. The topic is gold, whether it is money, and why central banks still own it.
Bernanke Signals QE3 Likely -- Silver and Gold Soar
http://www.wealthwire.com/news/headlines/1443
