At least that’s what I found when I seen my bitcoins were still worth $200 - $210 there when the price had crashed to $150 yesterday.
I did some more digging on their own forums to either clarify or disprove my theory and seems at least for the time being one bitcoin is worth $162.22 while bitcoin is currently trading between $60 - $80 on the exchanges that are trading so it's basically like a half price sale on most products there and last time I checked most sellers use the hedging feature to minimise their own exposure.
Below is some info from Silkroad on how hedging works on the site. It exists to protect both the seller and buyer there so if there is a loser in this it would be Silk Road but since they make 10% and charge something like 3% to use the hedging feature I think they wont lose out too much on it
Unhedged escrow:- Buyer places an order for 1BTC and 1BTC is in escrow. When buyer receives their good 1BTC is released to the seller regardless of BTC price. In the event of a dispute any refunds will be calculated on the bitcoin. For example a 50% refund is agreed the buyer will receive 0.5BTC and the vendor will receive 0.5BTC.
Hedged escrow:- Buyer places an order at 10am on 25 March 2013 for 1BTC@$100 (MT.Gox average) and $100 is in escrow. The buyer receives their goods on 27 March and the bitcoin price has up to $200. 0.5BTC ($100) is released to the seller. In the event of a dispute any refunds will be calculated on the dollar. For example a 50% refund is agreed on 27 March 2013 where the bitcoin price is $200. The buyer will receive 0.25BTC ($50) and the vendor will receive 0.25BTC ($50).
For all those who are morally opposed to silk road it's also much more than drugs and illegal’s these days too so please don't downvote this because you hate the site, That’s not the issue here
but 4:20 is only a week away and I only got 0.3 BTC right now so any tip would be so so welcome if you get a deal there
If anyone has questions I'll check in to answer shortly