A:

Here is one way they could do it; there are more sophisticated ways available.

Person A walks in the shop; asks the Keeper "how much for this 1 oz gold coin," keeper checks with his wholesaler, comes back and says:
"$27 over spot" A buys it.
Keeper re-contacts wholesaler and buys replacement ounce for $2 over spot.
Keeper makes $25 dollars (perhaps less transportation costs). When he has enough at the wholesaler to justify a shipment, he ships.

Another trick; buy kitco pool when selling stuff, sell kitco pool when buying stuff. (or similar electronic silver/gold). Again, charging enough to cover any costs associated with the pool, plus profit.

They work on the spread - it's that simple. They buy at x amount under and sell at x amount over - what the over and under IS the spread.

   Total votes: 31   12345

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