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<p>[QUOTE=&quot;medoraman, post: 1258156, member: 26302&quot;]Sorry I am just lost. So the circle, from what I read was:</p><p><br /></p><p>They had Spanish dollars (SD) that were worn and light weight. They would exchange then in the US at banks or businesses dollar for dollar for US dollars, (USD). They would export them to the west indies where all coins are weighed. Therefor their 100 USD could be exchanged for 103 SD. Take the SD back to the US and exchange again for 103 USD. Rinse and repeat. That is how I had always heard the arbitrage worked. </p><p><br /></p><p>Now, take the 103 SD and deposit them into the mint and they would get at best the same 100 USD they traded initially in the west indies for 103 SD. Why would they deposit them into the mint for an exchange of 103SD for 100USD when that arbitrage is exactly what they were trying to exploit? I guess the &quot;deposit into the US mint&quot; part completely confuses me, (which is nothing new I guess).[/QUOTE]</p><p><br /></p>

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