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Yesterday I picked up some Franklin halves at my local coinshop. Today coinflation shows the silver value of the Franklin half at $12.78. As I studied the coins a question came to mind. Will this country ever experience hyperinflation and/or fear level so severe that the demand for physical silver will push the value of the Franklin half over the value of it's big brother the $100 bill? Seriously, could that really happen some day? Its a mind boggeling thought.

And my question pertains to this occuring while both the Franklin half & Franklin $100 FRN are still legally recognized money. In other words if for some reason our government changes our currency and the Franklin $100 is eliminated and no longer has value then this of course doesn't count as a "yes" answer.

Of course "anything" is possible by definition but could such a scenerio actually take place in this great country of ours??

I think at some point in time it could easily surpass the $100 bill...maybe not in our lifetime but it wouldnt suprise me at all..

I think its inevitable. The 90% half has already increased 25x in value right? If the current system continues to "work" for years and years, normal inflation will eventually make the half worth a hundo. Some kind of collapse/hyperinflation will only expedite the process.

Why not? The move from face value to $12+ would smaller in percentage terms than a move from here to $100...a lot smaller really. 30 years from now could probably be a conservative estimate.

The Fed has double the amount of money available for circulation since 2008, luckily the banks are holding on to it rather then loaning it out... But, if they decide to start pumping that money out through the banks fractional reserve system, it would only take a few years if that to see the 90% silver half be worth $100...

Why not? A Silver Washington quarter is worth nearly 6.5 times more than a Washington Dollar..

jtlee321 wrote:Why not? A Silver Washington quarter is worth nearly 6.5 times more than a Washington Dollar..

I get your point however the Washington dollar & Washington quarter began with a 4 to 1 ratio in value whereas the Franklin $100 bill & Franklin half began with a 200 to 1 ratio--a much higher ratio to overcome.

But your point is well taken for I'm sure back in the late '60's very few people would have believed that a '64 quarter would someday be worth more than six one-dollar bills.

simple algebra says when silver is $280/oz, junk silver is >200x face value.

Hyperinflation looks unlikely, for various reasons. If we're lucky we'll see >3 CPI, again given economic indicators, this still seems unlikely.

I do expect silver to go higher($280 an oz seems like a stretch) but not for reasons of inflation. It's still a store of value, useful industrially and finite. That's why I'm holding it.

Yes, sooner than most think.

PADFH wrote:Hyperinflation looks unlikely, for various reasons. If we're lucky we'll see >3 CPI, again given economic indicators, this still seems unlikely.

I do expect silver to go higher($280 an oz seems like a stretch) but not for reasons of inflation. It's still a store of value, useful industrially and finite. That's why I'm holding it.

It CAN'T happen here, this IS America after all.

I donno . . . In the 10 short years that I have been stacking the ol'Frankie has gone from under 4X to over 25X. Who's to say that it couldn't go to 200X in the next 10 years or so . . . Just saying . . .

HH