Silver Hypothetical
Submitted by architecturalpaul on Thu, 04/03/2008 - 22:09
Silver goes to $100,000 an ounce when the dollar crashes. I want to sell 1 Silver Eagle for $100,000 dollars to pay off my mortage. Who do I sell it too? Who is going to have $100,000 to buy it? Or can I just give the Mortage company that Silver Eagle? And will the Mortage Company take that $100,000? or the Silver Eagle? Am I just buying 90% silver coins and Silver Eagles for barter?
Thanks-
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he/she means
their mortgage stays the same. If hyperinflation occurs
after you buy a house, then it would be easy for you to
pay off your mortgage. If one silver coin would become worth 100k , then a loaf of bread might be 10k, but the amount you owe on your house
would stay at the original pre hyperinflation amount, lets say 100k. Your bank would most likely accept the silver coin for payoff.
Well, you have to realize
Well, you have to realize the situation that would be prevailing if silver goes to $100,000 an ounce, or $1,000,000 an ounce. In such a scenario, those $100,000 would be worth radically LESS than $100,000 today --- because the dollar would have to have depreciated radically to support such a price. If (when) the dollar were to undergo hyperinflation, then "those" dollars might only be worth 1/100 or 1/1000 of today's dollars, so things would (very roughly) be balanced out. At that point, $100,000 would be like maybe $50 or $100 today, so it would be no problem to sell 10 ounces of silver for $1,000,000.
The key thing is, you have to stop thinking in terms of dollars! They are constantly losing value --- it's like trying to keep quoting distances if the mile were redefined every day to be a little shorter than the day before. It seems you are possibly expecting (or hoping?) that silver will one day go up in value to $100,000 an ounce in TODAY'S dollars ---- that, I think, is wildly unrealistic, bordeering on absurd. The absolute value of silver may go up and down, but never, ever by such an extreme. From all I know and can see, at the very best you might at some point get silver going up to maybe ten times its current VALUE, ignoring the price in dollars.
All you have to do is look at the currency circulating
in Zimbabwe.
I just watched a news report the other night from there. To buy one egg is $2 million Zimbabwean dollars. A tiny "penny candy" is $500,000. You can't buy anything for less than that. They carry around paper in these huge denominations. The future for the US?
And, yes, I would take your silver if I were your mortgage company (if I were still in business).
___________
Lisa C.
www.women4ronpaul.com
Ron Paul "Sign Wave Across the USA" -- November 5th!
I saw that report also
it made me get that sinking feeling like that can be us. Thanks, for posting.
Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.