(Please watch the video first before reading the rest of this blog post.)
Mark Dice could not get one person to choose a 10 oz. bar of silver over a king-sized Hershey’s candy bar. The candy bar sells for about $1.50-$2 depending on where you live and if it’s on sale. The silver bar, according to today’s price of silver per ounce, is worth $152.80.
What does this reveal about people?
First, people are only interested in immediate gratification. What I mean by that is that they judge the value of something based upon how quickly the gratification received from the item can be experienced. In choosing the candy bar, they can immediately, for a couple of minutes, enjoy chocolate “bliss.” All it takes to receive the gratification is to tear off the wrapper and begin eating. In order to receive gratification from the silver bar, it will entail taking it to a place that buys silver. That means taking the time to find the place and then go and complete the transaction.
So what is immediate gratification worth? Well, most businesses that buy silver will only give you, at most, 50% of the actual market value. So, let’s go with that percent. So, that 10 oz. bar of silver will get you up to $76.40. So, the potential value of that immediate gratification is $74.40. It probably would take about 2 minutes to eat that candy bar. So, the hourly value of that immediacy is $2,232.
I would think that 3 hours of research and traveling to a place to sell the silver would be more than sufficient to complete the transaction. That means an hourly return of almost $25. How many people, if offered an opportunity to make $25/hour for a few hours would jump at the opportunity? Many I believe.
Second, people cannot see anything that is not right in front of them. They cannot see beyond their nose. They struggle thinking creatively. They struggle to consider or see possibilities not readily apparent.
Third, this reveals that people are shackled to the adage, “If something seems too good to be true, it probably is.” I understand skepticism when offered a deal that seems too good to be true, but what would you be out if you chose the silver bar and it turned out to be worthless? A $2 candy bar, that’s what. These people were unwilling to take a chance over a $2 candy bar. People are adverse to risk, even a good risk. These people revealed that they are unable to weigh potential risk against the potential reward.
Hope they enjoyed those 2 minutes of chocolate “bliss.”