How can you use place value to describe how 0.05 and 0.005 compare

Since .05 is in the hundredths place, this means that the fraction form of this decimal is 05/100 (or just 5/100)
.005 is in the thousandths place so the fraction form of this decimal is 005/1000 (or just 5/1000) 
now to make it easy to relate them, just make them both the same denominator. 
.05 is the same as .050 so 5/100 is the same as 50/1000.
so now our two fractions to relate are 50/1000 and 5/1000.

5 x 10 is 50 so the first decimal (.05) is ten times the size of the second fraction (.005)