The level of simplicity in pricing your transactions is based on what tools you have available. In most cases you'll want to first determine the value of each silver piece you will accept in US dollars, then subtract each piece from the total due. Before detailing the actual pricing methods, there is some information you need to know:
What Forms of Silver Should be Accepted?
Silver comes in an unlimited number of forms including rounds of many sizes, bars of many sizes, and other shapes and sizes. For the sake of simplicity, Silver Annex recommends you accept only 1oz rounds, 1/4oz rounds, and 1 gram cards.
What Designs of Silver Should be Accepted?
Silver Annex suggests designs that are legally compliant in all 50 US states and are publicly available at low prices. Silver Annex recommends the following designs for acceptance:
Delaware Valley 1oz Silver Circle
Delaware Valley 1/4oz A3
Shire Silver 1 Gram Card
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Valuing Silver Upon Sale
Each transaction will take two silver pricing steps, both of which can be fully automatic with the appropriate tools. The first step is to determine the current spot price of silver. Second, look up the design premium for each silver design acceptable for the transaction.
How do I find out the spot price of silver? (step 1 of 2)
The spot price means the price per oz on a major commodity market such as COMEX.
Using the internet, visit http://www.kitco.com/charts/livesilverw.html
, and look at the "last sale" amount in the top chart for the current spot price.
Update the price at least once per day to keep your information as up-to-date as possible. Silver Annex is working on methods so that you may use a POS system, smart phone, or desktop computer to do this automatically.
How do I find out the design premium for silver pieces? (step 2 of 2)
Each silver design has a cash value based on the spot price of silver. The spot price reflects how much it costs per oz of silver for a 5,000oz bar purchased at a major exchange. The spot price therefore reflects a discounted price for large bars. For 1oz rounds, 1/4oz rounds, and 1 gram designs, the price is higher because the manufacturing costs per oz are higher. The amount over spot price for each design is considered the design premium of the silver piece.
The design premium of our recommended silver pieces is:
Delaware Valley 1oz Silver Circle: $1.50 per piece
Delaware Valley 1/4oz A3: $1.50 per piece
Shire Silver 1 Gram Card: $0.60 per piece
Silver Annex is working on methods where the design premium may be added automatically using a POS system, smart phones, or desktop computers with internet access.
After you've taken both steps to get the pricing information you need, you can calculate the value of each silver piece you accept using a pocket calculator by adding the current spot price value of the silver piece to the design premium of the silver piece.
How Does the Transaction Work? (method #1)
By knowing he US dollar value of each silver piece using the steps described above, and then counting the number of each silver piece given to pay for the transaction, you can subtract the US cash value of each silver piece one (or more) at a time from the total due, and you'll be left with either the balance due in US dollars what should be given as change as US dollars.
How to Price the Transaction in oz of Silver? (method #2)
Rather than pricing the transaction in oz of silver, we recommend using the above method to assign each silver piece a dollar value. However, there are ways to price a transaction in terms of oz of silver.
First, determine the total amount due in US dollars. One low-cost (but less simple) method to calculate the amount due is to use a currency conversion calculators. Silver Annex recommends two calculators. One is used to convert dollars to silver, and the other is used to convert silver to dollars. After the calculator is set up using the provided directions, simply enter in the dollar amount of the sale and press the convert to silver button.
Use a second calculator and enter in the amount of silver due that showed up on the first calculator. You can then subtract the amount of silver given by the shopper. Lastly, press the convert to dollars button to convert the balance into dollars. If they gave too little, then the remaining amount will be what is still owed in US Dollars. If they gave too much, the amount will be what you owe them as change in US dollars. If the balance is negative, that is their change. If the balance is positive, that is the dollar amount they still owe.
To Order Calculator(s):
Pricing Tools: Smart Phone, Computers, and POS Systems
In the works for Silver Annex merchants is are applications that will fully automate calculating the amount of silver and/or US dollars due, and then the change due.
It is highly recommended that you consult Silver Annex staff for a face-to-face meeting so we can help you tailor the most profitable pricing strategy for your business.
$30 for a one-hour in-person consultation, plus travel expenses.
Converting Silver to Cash
Next: Our Silver to Cash Exchange page helps you learn the easiest way to convert your silver back to cash. Previous: Advertising Services