My core business is Mint stamps ("postage") and coins and bullion and rare banknotes, and yes in broadbrush theory this can work.

Dealer buy/sell spread on say a Krugerand or Sovereigns or Maple Leafs or US Eagles or Perth Mint ingots is miniscule - it all is about volume. Bullion coin dealers often buy gold coins at say $235 an oz and sell at $245 an ounce when "spot" bullion is at $US240. (Our recent 10% GST messed this up, but Perth Mint got an exemption passed into law for gold coins of purity greater than 99.4% which conveniently is exactly what they make!) State Sales taxes in the USA may or may not apply to bullion, I do not know.

They will ALLLLLLL add the (here) 1.75% VISA/MC charge of course to that sort of level. That % in USA is oddly, higher for most merchants.

And of course, for this to work, you either accept the 5-10% loss on each same day deal or take a forward position on bullion prices.

"Buying" points same-day for 5-10% "cost" is nuts. And if you want to take position on Bullion, the Chicago Futures Market will make you enough money if you are right to allow you to BUY full revenue F tickets, and not bother with this penny-ante method.

------------------
~ Glen ~

[This message has been edited by ozstamps (edited 05-02-2001).]