The Dollar Has Crashed, Must Cash In, What Do You Do?

The first thing is you do not panic. You take some time to see what is going on. In other words you think a little prior to acting. You may only need a weeks wroth of living expense until things start to make sense.

If the dollar crashes it will be a short term event, history has proven this in places like Germany and South America. There is no doubt we would have a new green back and devaluation of the old one.

If needed there will be more than enough places to exchange PM's for the current currency to pay bills. I would expect a very fluid market so only exchange what you need on a daily or even weekly basis.

Depending on the event and world currencies it may or may not be a good time to do anything.

If the world goes then the PM might just make good weight and that is about all. There will be far greater and better things/commodities to bargain with.

Now if you just need cash in hard times then find the highest payer to the spot price.

Your taking this too literally...

You, from my understanding, can have the dollar crash, but still be present... Just like the stock market can crash, doesn't mean its worthless.

So for this, I am saying that the dollar has become so depreciated that it would be the lowest possible value it could be. So instead of silver being 30$ an ounce, it maybe 300$ an ounce. But unfortunately creditors, and food, and bill still must be paid in US Dollars...

Once again this is purely hypothetical and curious on how people would unload their stash. Please dont look too much into the scenario, becuase you could spend pages and pages talking about funds, economies, politics, and other things that would need to be discussed in this situation, lol

If you really think about the PM would probably be accepted! Why exchange if it we me I would surely take the PM not worthless dollars

So, in this crash scenario, we have silver at $300 an oz.? OK, first thing I would do would be to sell enough to pay off my mortgage. It is denominated in those old worth-a-lot-less US dollars, so that would be fair game!

There are a few coin and pawn shops that buy and sell in my area, so I would be checking them out to see which would give the best deal.

Next up, and I agree 100% with MK on this, take some time to see what is happening. There will not be any mad rush here that I can see. Haste making waste is likely to be in full force under these conditions, so taking a little time to let the situation become clear(er) would be really good. This is one of the reasons why those of us who stack also tend to store emergency food and water. We buy extra food regularly and add it to "the larder" in our basement. It stays cool down there year-round, so keeps quite well. Keeping a year's worth of food on hand could well turn out to be a wise precaution.

Those of us who stack will be in a perfect position to become the new bankers, if we so choose. Unlike them, our lives are not built around financial slight of hand. By being honest brokers we would do alright for ourselves, of course, but we would not be cheating anyone. That alone should be enough to bring us all the business we can handle.

As to the new dollar vs. the old dollar, who can say? There are MANY ways that this could play out. My guess is that there would be some way to trade in the old for the new. I can't see the gubmint just completely abandoning the old dollar, as that would create a lot more hardship and pandemonium than they want to deal with. Besides, if they did that, what would prevent them from doing the very same thing with the new dollar? If it is going to work, we have to have at least some trust in it. Without trust in the new dollar, there would be no point in issuing it, IMO. The only real question would be the conversion rate. I am sure that the gubmint would set a rate by law... 5 old for 1 new or some such. If they do not set the PM prices but allow the currency to float against PMs, then the market would probably set that rate and it would likely be higher than we have today due to the uncertainty of holding cash. While some of us who collect PMs are already uncertain about holding dollars, the vast majority of the public is not. A crashed dollar would be quite an eye-opener for them.

Assuming the dollar has crashed - why are you trying to "cash in" on your silver? Silver IS money - so why trade it for worthless paper?

Well, for one thing... hypothetical situations are real easy to over-think. Until it begins playing out, none of us will know what all the rules will be. If you look at a FRN, though, you will see that is says, "This note is legal tender for all debts, public and private". Given this, if the gubmint is still in control of the country, it might be difficult for stores to legally refuse FRNs as payment. Without price controls, though, perhaps they could raise prices to compensate for the decreased value of FRNs. If so, then there could be a dual pricing system wherein one might pay $25 in FRNs for a loaf of bread but only $0.25 in 90% silver coin.



Right! The trick would be to use up as much of the dying currency as we could while preserving the PMs for later.



Crashed does not necessarily mean that it is dead and has no value. It could mean that the old dollar has simply lost a lot of its value but is still usable as currency for buying food and fuel or paying debts. If the currency is still being used but is less valuable, then we could trade some silver for currency that we would then immediately spend, such as to buy food and fuel. There would be no reason to trade PMs for currency and then just hold the currency. Because the value of the old currency is likely to be a lot less, we would get more per oz. of PM traded. Of course, a lot of the prices would likely be sky high too but at least this would allow us to trade with those who do not accept PMs in trade.



Yes, that would be ideal but there might not be anyone close by who would do that. In this scenario, fuel is likely to be in very short supply, perhaps even rationed, for some time, so it's not as if we can drive all over town looking for the best buys and who takes what currency. We could all be walking or riding bikes at this point.



Perhaps not in the world of theory, where taking successive steps that are half as long as the one before it requires an infinite number of steps to get anywhere, but in the real world, close really IS good enough. Consider the "value" of the $100T Zimbabwe dollar bill. Fourteen zeros on that hummer and it still wasn't worth much, if anything. Maybe it wasn't worth zero but it was close enough as to not matter. At some point, people simply quit using the currency and it becomes well and truly dead.



Yeah? Tell that to us older folks who worked hard and saved our money only to watch inflation melt it away. Yes, quite a few of us have a lot of dollars but the amount of real goods and services that we can buy with them are MUCH less than they were in the 1960s... which I, for one, remember quite well. Silver was about $1.30 an oz. back then which is why a silver dollar only had about 0.77 oz. of it. (not quibbling, just sayin')

That presentation would get different replies!