I know how normal metal displacement reactions work. If one metal is more reactive than the other, they will displace.
For example, normally for this reaction: $$\ce{Fe_{(s)} + 2AgCl_{(aq)} -> Fe^{+2}_{(aq)} + 2Ag_{(s)} + 2Cl^{-}_{(aq)}}$$
I would say that because the iron is more reactive than silver, the iron pushes it's electrons onto the silver.
But in this case, can this reaction depicted actually occur? Because $\ce{AgCl}$ is an insoluble salt. This means that the $\ce{Ag+}$ ions are not floating around to touch the iron metal. This means the reaction cannot occur.
I think in reality since $\ce{AgCl}$ can dissolve a little bit due to equilibrium, the reaction would go ahead, but if we pretend equilibrium dissolution doesn't occur, can this reaction proceed?
I think it can occur if the iron is touching the AgCl directly (allowing for conduction). I also think it cannot proceed if the iron was not touching the AgCl. Is this correct? For the purposes of answering my question, please ignore the solubility of AgCl.