Purpose
Metal Money Live (MML) aims to provide a tool for valuing market metal money in US Dollars (USD). The implications of such a tool extend to conducting trade or exchanges (buying and/or selling) with metal money. One way to measure the fair value of any particular asset used as money is by determining the market replacement cost of the asset at the time of a trade or exchange. The MML value model aids in determining a fair value of market place monetary metals with a focus in more common coin forms such as business-strike bullion and constitutional coinage. MML is relevant to buyers, sellers, and traders of physical metal, and is provided gratuitously with an ultimate purpose of encouraging debt-free trade using sound market money.
Method
The MML model does not use the USD/oz spot price. Values are determined by actively polling entities such as dealers, banks, mints, or any sellers/exchangers of coins who provide real-time values of products in various currencies. These values are the market sale price for obtaining the product and do not necessarily include any additional tax, shipping, or volume discounts. The focus is on determining a market value for common coinage in USD. Values not given in USD are converted using current exchange rates. Although precious metals as ingots or bars are equally a store of value and can be used in trade, the focus is not initially placed on these products since rounded coin form is common in daily use. Sample products are selected without regard to quantity restrictions, delivery time, condition, grade, certification, rarity, history, or any additional numismatic value unless otherwise noted. Numismatic coins are less common, and there are resources available such as Greysheet to help determine values.
Motivation
The ubiquitous Spot Price is at least partly determined by exchanges transacting in future contracts, or paper trades. It is a nebulous pricing model on a trading platform in which the cost of actual delivery of metals cannot be accurately determined at any given time. Moreover, it also does not accurately value the supply and demand of particular products which often has a significant spread between the spot and physical price. On the supply side, all finished products have inherent delivery, manufacturing, minting, and supplier overhead costs. Online dealers and suppliers are keenly aware of demand and must adjust pricing with a spread, or premium, to avoid being depleted. The spot price does not give confidence when transacting in physical metals because it is not determined solely by market supply and demand of its various forms.
Collaboration
Active management through feedback, collaboration, and monitoring is important to the long term success and purpose of this project. New sources should be included as well as changes to existing sources to achieve accuracy in the current value of a particular product.