A prospective buyer shows up to buy a car you have listed for sale. He drives it, likes it, and expresses a desire to purchase the car. He says he can pay your asking price in paper or offers 1/2 in silver bars. Which do you take?
Only half in silver? I'm gunna take the fake money because it will be spent in days on bills. Orrrrrr I could use the fake money to buy gold/silver.
I'll take the silver if he offers 10% over asking. I have to pay a fee to convert it.
I'd like to point out that neither the paper money nor the silver money have any real, inherent value. They are both only worth as much as we confer upon them.
I'd take the paper simply because I wouldn't believe the man had silver. But I see what you're doing reb! I support the gold standard as well
Real money known as silver.
I'll take the paper and go buy my own silver.
I assume the fake money is the paper, I'm taking that.
I would take money. I would need another car and that seller will most likely want cash. Silver is not practical to handle. Same would apply to gold.
Oh I just realized I think you are suggesting he is going to pay me half the price. I will find another buyer.
At first I thought you meant he was paying half in money and half in silver. That situation, no I would take money
I would take silver as payment in a second. I would only do it if I am getting the silver at wholesale prices.
Fake money. I can still buy precious metals with it long before it loses half it's value. Besides, you probably couldn't see half my car's value in silver with the naked eye.
I figured that would come up. I thought about putting "dollars" and "silver" but I wanted to differentiate them somehow. You have a valid point.
Yeah Rebel, the question's still valid at par.
Certainly not silver. It's fallen to less than half its value from a year ago. To break even on the car, silver would have to double in value and then some. I'll take payment in full now, thanks.
How has the value of fiat currency faired over the past few decades?
Silver has steadily risen in the same time frame.
Silver bars. I'll never again run out of the ability to conduct electricity efficiently.
I know, right! Or heat. You can build a pretty sweet heat sink for your computer out of a block of silver!
Cash. I have no way of knowing it is real silver without testing. Also, demanding all in cash is much less hassle.
Lets say you know it's silver for the sake of argument
Test the conductivity! Silver is more conductive than any other element.
@rebel...I still take cash. Less hassle.
How? If he has two briefcases in front of you, what's the hassle?
Then again those who take the silver would be thinking about its investment potential and not its liquidity.
So you'd be worried that the silver is fake - and you'd be wise to test it. But you know the Federal Reserve notes are fake money - created out of thin air, and they are losing value constantly.
Spending the silver can be a hassle, too.
What, like Xerox paper? Is that what you mean?
May as well be
Monopoly money, or federal reserve notes.