RCO and Associate Rate Formulas for $20 Silver Base

Recently, there have been a lot of discussions about the rate of exchange for Liberty Associates when the Liberty Dollar Moves Up to the new $20 Silver Base. Please allow me to clarify this matter for everyone.

But first, many people wonder if the $20 Silver Base will be successful? Oh yes! For those who are new to the Liberty Dollar and have doubts that merchants will accept a $20 Silver Liberty when the spot price of silver is 'only' $12, let me remind you that this crazy notion was very prevalent when the Liberty Dollar was introduced with silver at 'only' $4 or $5 per ounce! Most merchants know nothing about the silver market, let alone 'spot'. Most don't even know anything about FRNs or that they are frauds. But they know that the Silver Liberty feels good and that it has intrinsic value regardless of anything else. That is usually enough.

So as your money is important, so are its rate formulas. Just as we have an open audit, and an independent source for the 30DMA, there are no secrets to the Liberty Dollar rate formulas. Please note: The rates model starts with the RCO rate and the Associate Rate is based on the RCO rate.

Nomenclature for the Rate Formulas is:

Formulas for the one ounce Silver Liberty:
RCOQ = S + F
LAQ = (FV - RCOQ) (0.50) + RCOQ

Quotes for one ounce $10 Silver Libertys at $10 Silver Base:

LAQ = (FV - RCOQ) (0.50) + RCOQ
Example at $6/oz silver: LAQ = 10 - 7.50 X 0.50 + 7.50 = $8.75
Example at $8.50/oz silver: LAQ = 10 - 10 X 0.50 + 10 = $10*

* NOTE: Due to mfg and overhead there is a period when the formula does not work. This period is called "no man's land" because nobody wants to be there. But to get to the new $20 Silver Base, we must go through it to "Move Up". During this time the RCOs create their own pricing. When spot silver is over $8.50 Liberty Dollar uses an intern pricing for the later period of the 30 days required to Move Up.

Quotes for one ounce $20 Silver Libertys at $20 Silver Base:

RCOQ = S + F (minimum of 1,000 ounces in any combination of currency)
Example at $8/oz silver: RCOQ = 8 + 3 = $11
Example at $10/oz silver: RCOQ = 10 + 3 = $13
Example at $12/oz silver: RCOQ = 12 + 3 = $15
Example at $15/oz silver: RCOQ = 15 + 3 = $18

LAQ = (FV - RCOQ) (0.50) + RCOQ
Example at $8/oz silver: LAQ = 20 - 11 X 0.50 + 11 = $15.50**
Example at $10/oz silver: LAQ = 20 - 13 X 0.50 + 13 = $16.50
Example at $12/oz silver: LAQ = 20 - 15 X 0.50 + 15 = $17.50
Example at $15/oz silver: LAQ = 20 - 18 X 0.50 + 18 = $19

** Our earlier experience has taught us to set the maximum Associate discount at 20% from face value; therefore the Associate Quote at $8 silver would be $16, not $15.50. We anticipate this period to be very brief but any windfall would help compensate the RCOs for their losses during the period in "no man's land" just prior to the Move Up.

Formulas for the half ounce Silver Liberty

RCOQ = S/2 + F
LAQ = (FV - RCOQ) (0.50) + RCOQ

Quotes for half ounce $10 Silver Liberty at $20 Silver Base:

RCOQ = S/2 + F (minimum of 1,000 ounces in any combination of currency)
Example at $8/oz silver: RCOQ = 8/2 + 1.50 = $5.50
Example at $10/oz silver: RCOQ = 10/2 + 1.50 = $6.50
Example at $12/oz silver: RCOQ = 12/2 + 1.50 = $7.50
Example at $15/oz silver: RCOQ = 15/2 + 1.50 = $9

LAQ = (FV - RCOQ) (0.50) + RCOQ
Example at $8/oz silver: LAQ = 10 - 5.50 X 0.50 + 5.50 = $7.75***
Example at $10/oz silver: LAQ = 10 - 6.50 X 0.50 + 6.50 = $8.25
Example at $12/oz silver: LAQ = 10 - 7.50 X 0.50 + 7.50 = $8.75
Example at $15/oz silver: LAQ = 10 - 9 X 0.50 + 9 = $9.50

*** Our earlier experience has taught us to set the maximum Associate discount at 20% from face value; therefore the Associate Quote at $8 silver would be $8.00, not $7.75. We anticipate this period to be very brief but any windfall would help compensate the RCOs for their losses during the period in "no man's land" just prior to the Move Up.

Move Up point from the $10 to the $20 Silver Base is $7.50 30DMA
Move Up point from the $20 to the $50 Silver Base is $16.00 30DMA
Move Up point from the $50 to the $100 Silver Base is $41.50 30DMA
Move Up point from the $100 to the $250 Silver Base is $84.00 30DMA
Move Up point from the $250 to the $500 Silver Base is $211.50 30DMA

Many thanks for all your discussions. A lot of education is going on about money and that is good because the only way back to "just weights and measures" is for regular people to understand the god awful criminal mess we are in and stop using their money!