Origin
The first example of it in English is from the poet Thomas Carlyle, who translated the phrase from German in Sartor Resartus, 1831, in which a character expounds at length on the virtues of silence.
Explanation
Speaking is good but saying nothing is better. Discretion can be worth more than even eloquent words. The virtue of speaking well, rightly and effectively also includes the capacity to stay silent, when situation demands so. Besides earning respect and acceptance, needless problems can be obviated because one is a slave of the words he utters while being a master of those he chooses not to speak.
No wonder, in India, the observance of staying silent for a full day, once in a while (mounavratha) has been practised with a view to changing instinctive and impulsive habits.
Speech is of some value if well considered and built on real knowing (experience, proper analysis and clear thinking, right assumption and correct conclusion). Silence, on the other hand can lead to a much deeper state of conciousness in fact, directly to real insight, intuition and wisdom. However, both have some value, when properly practised and used.
Example
Jerry has two teenage children who listen to music using their headphones all day. He knows that speech is silver but silence is golden.
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