Nevada carrier
Regular Member
Recently, I've purchased a small quantity of silver bullion coin because if global unrest upsets the dollar more than it's already been upset, I have something that can hold value. When I say small quantity, I'm talking about 20 bullion Silver Eagle coins. Not chump change, but in the grand scheme of things, it's not a huge amount either.
My question isn't about the pros and cons of buying gold and silver bullion, but about how it will be received by merchants if the **** hits the fan and a gallon of gas becomes $10 or more, bread becomes $20 a loaf. A month ago, I had no clue what to look for when investing in precious metal. And I would hazard a guess that the general public at large doesn't know much about precious metal exchange values either.
So lets say that hyper inflation were to occur, and I were to need to buy something like penicillin for instance, today you can buy a 10 day script for about $16, but perhaps some event causes the price to jump ten fold. Presumably, the amount in silver bullion that the script costs today would be the same amount it would cost after the inflation event. But merchants are not accustomed to accepting anything other than paper currency thus the concept of accepting silver coin as payment for goods and services may be a foreign concept to them.
Has anyone ever pondered this scenario? Do you believe that merchants can adjust rapidly to conditions where people are offering gold and silver as payment for goods and services? A 1oz. Silver Eagle caries a face value of $1, however it's actual dollar value is Dependant upon the amount of fiat money in circulation. Today, they sell for $35-$40. Using my penicillin example above, is it conceivable that merchants may one day list prices in terms of Silver and Dollars. Would they say to a customer, Your penicillin prescription will cost $0.50 in silver bullion coin or $160.00 in cash (paper)?
My question isn't about the pros and cons of buying gold and silver bullion, but about how it will be received by merchants if the **** hits the fan and a gallon of gas becomes $10 or more, bread becomes $20 a loaf. A month ago, I had no clue what to look for when investing in precious metal. And I would hazard a guess that the general public at large doesn't know much about precious metal exchange values either.
So lets say that hyper inflation were to occur, and I were to need to buy something like penicillin for instance, today you can buy a 10 day script for about $16, but perhaps some event causes the price to jump ten fold. Presumably, the amount in silver bullion that the script costs today would be the same amount it would cost after the inflation event. But merchants are not accustomed to accepting anything other than paper currency thus the concept of accepting silver coin as payment for goods and services may be a foreign concept to them.
Has anyone ever pondered this scenario? Do you believe that merchants can adjust rapidly to conditions where people are offering gold and silver as payment for goods and services? A 1oz. Silver Eagle caries a face value of $1, however it's actual dollar value is Dependant upon the amount of fiat money in circulation. Today, they sell for $35-$40. Using my penicillin example above, is it conceivable that merchants may one day list prices in terms of Silver and Dollars. Would they say to a customer, Your penicillin prescription will cost $0.50 in silver bullion coin or $160.00 in cash (paper)?
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