In almost any "emergency" silver (or gold) would be next to useless. The most likely scenario for any emergency is the banking system becomes unavailable due to *insert problem here* for a period of time and you need to get by and pay for things. Practically no one is going to take silver or gold, but everyone will take cash.
Actually I remember a couple years ago, when even big name convenience stores were taking gold in lue of cash. If there is ever a run on the banks, and the banks are directed to shut up shop for a week or so, Im betting alot of people will take it.
Ok I guess I should clarify on my definition of emergency. I mean unexpected bills such as car repair not this end of the world stuff.
Who? Got a reference for that? Are you talking about in Australia? if so then I've never heard of such a thing happening.
I use my credit cards for sudden emergencies and then pay the credit card off with cash. The premiums on silver doesn't make it practical for me, especially since I'm under water on it I wont sell it unless I absolutely needed too.
In that case cash is king. Like I said, practically no one is going to take silver or gold. Most people would think you are trying to scam them. Everyone takes cash without a moments thought. And they obligated to do so for all debts. They are also obligated to take legal tender gold and silver coins, but only at the declared face value. Why you'd chose silver or gold for these types is cases is beyond me. You'd have to go out of your way to covert it to cash first.
Everyone should have enough money set aside for these types of problems anyways without having to sell thier stacks. Your just taking extra losses if you buy silver to just convert it back into cash for an emergency. I just had a sudden 1700 car bill. My axel litteraly just broke. It hurt but I paid with my card to get that 17 dollars cash back and paid the card right off with my emergency cash reserve. Now I'm topping my emergency reserve off again before purchasing any more metal.
I'm betting they won't. 99.9% of the population don't have gold or silver in a form to trade, so you'd most likely be the first to offer it to someone in such an "emergency" and like I said, I recon they will think you are scamming them because they have never traded nor likely seen a gold or silver coin or bar before. And they certainly won't know what spot price is. They might give you face value for it, get a buck for you Kook - bargain!
cfcbryan, who are you? Which city are you in? You're new on the forum. Tell us where you are. Make friends. Meet the stackers in you're area. Anyone in the Sydney scene can raise an easy $50,000 from the chums any day of the week without collateral. In the meantime, stack cash, food, petrol and make friends.
Would love to meet other stackers as I am def new to the scene. I live in the US. Currently have about 160oz. Learning as much as I'm can. Originally started as an "investment" but now I guess you could say Ive become part collector because I have switched to mostly higher premium coins. Just looking for any excuse I can to buy more silver
In Australia the majority for the population would use credit cards for almost every transaction. The smart ones pay it off at the of the month and never pay any interest, it's just the most convenient way to pay for everything these days. I heard you Yanks are still using cheques (checks) at the supermarket?
Physical silver is not liquid in most cases in this consolidated market unless you are willing to take a loss. .
I pay card for almost everything. Love me my cash back especially when I can just tranfere from my bank account when I get home. I don't see checks very often, sometimes and older couple still uses them but it is painfull to watch :lol:
What is the use of cash in an economy where such transactions are legally limited and in quite some cases illegal, as decided and tightened especially in recent years? It doesn't need some higher / hyper inflation scenario to make people get rid of cash (and bank account based currency). For the same reason that people buy debt, stocks, houses, art, and other stuff: to bridge trading in time to what they really wanted for their currency. Gold and silver are such other stuff, and all it needs to make people accept anything as payment, is a good "price", and whether or not that price is a "loss", just depends on ones earlier decisions / price you paid / what you produced for it, versus what you got for it later. For this same last reason, is any claim about a product, gold silver and peanuts, void. It's not the product that determines the outcome, it's ones trading behaviour that does. From that perspective, is this topic is equally void. The focus on the metal is just plain wrong, the time points and their price tags, should be.
Gold can be very useful as a sweeter in large transactions. Never tried silver but I think a couple of kilo bars would work also.
