What pricing formula?
Sun, 12/09/2007 - 16:13 — webmaster
Do we need to specify an "accepted price formula?
One thought is that we can list merchants on the .com site with something showing what their acceptance forula is. Alternatively, we can try to get all merchants to agree to a single formula.
Formula ideas:
- Spot
- Spot plus $1
- Spot rounded up to nearest FRN$
- Round halves to half $, quarters to quarter $?
- Spot plus X% (5, 10, 20)
- Democratically select price
- Use the LD formulas
Sizes? Do we have prices for half and quarter ounces?
Measurement? Grams or ounces?
If we use the democratic model, do we:
- vote monthly
- have an open ended poll where merchants can change their vote anytime
- vote when certain benchmarks are met
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Re: What pricing formula?
I have established a website at http://silverismoney.info which provides links to the latest market rates from XE.COM for silver. Note that silver coins have silver so there's no reason to restrict ourselves to a particular type of silver piece. Just accept silver at a percentage of its silverismoney.info/xe.com value. "Scrap" silver coins are readily available form coin dealers and there's no sales tax here in New Hampshire. Each person decides what percentage of xe.com value they will accept what pieces, and of course what pieces they will accept at all. There's no reason not to accept foreign silver coins either. In fact, some foreign silver coins have the same silver content as their U.S. counterparts, e.g. a 1947 Dominican Republic half peso coin is 12.5 g of 90% Ag, thus 11.25 g Ag, same as a U.S. 1947 Walking Liberty half dollar.
Please consider a link to my site also.
Re: What pricing formula?
Finally got a look at your silverismoney site. Basic but cool.
On the XE site I found this which is pretty cool.
Re: What pricing formula?
I have the strong opinion that a business should set the exchange rate. Don't reinvent the wheel, just do what they do in Canada.
In Canada the price is in quoted in Canadian dollars. If a customer wants to use US$ then the business will quote a rate which US$ will be accepted for. For example, if you eat at a restaurant and have CAD$20 to pay, then the restaurant may offer a rate of US$1.02/CAD$1. You pay your US$20.40 and you're on your way. It is common for a rate of $1.02/CAD$1 to be quoted when US$1/CAD$1 is the market exchange rate. This discrepancy is nothing but a transaction cost. Also since this threshold is set by the business, a business that may not be a silver fan will still accept silver perhaps with a higher premium.
If a business loved silver then they would quote the prices in ounces, and then set the US$ amount that they will accept in the place of silver.
I believe the fact that NORFED didn't adopt this type of pricing system led to problems. People should think of minted medallions as a currency that they can trade no different than CAD$, but not the same as spot silver.
Re: What pricing formula?
Exactly! At Shire Silver, we want to list options available for businesses so that when you view a merchant on the Shire Silver Trade site you'll see their rate. You'll know even before visiting them if you think their rates are to your liking.
Re: What pricing formula?
We could use something like the 30 day moving average as the base for formulae instead of the current spot price.
What do you all think of that idea?
Re: What pricing formula?
Spot + production + 1FRN rounded up to the nearest 5?
Re: What pricing formula?
I say spot plus percentage with no $ amount on face.
I kinda like grams ... I like the easier math for smaller sizes ... but that might only matter for gold