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<p>[QUOTE=&quot;GDJMSP, post: 2014610, member: 112&quot;]It&#039;s really simple and I don&#039;t know why it&#039;s so hard to understand. If the mint buys a million or 5 million ounces of silver (no matter what the number is) and that silver cost them $18 an oz, (again no matter what the number is) all they have to do is sell that 1 million or 5 million ASE coins for $19 plus their other overhead - and they are guaranteed a profit. And whatever the spot price of silver does after that - simply doesn&#039;t matter. It can go up and it go down and it&#039;s not going to change anything for the mint. They are still going to make their profit on that given number of coins.</p><p><br /></p><p>Now if 2 months later they need to buy another 5 million ounces to make more coins, and they have pay $21 oz for that silver. Then they simply charge $22, plus their overhead, for that 5 million, and again they make their profit.</p><p><br /></p><p>And if they only had to pay $15 an oz then they charge $16 plus, and so on and so on. </p><p><br /></p><p>And that is exactly how they do it.</p><p><br /></p><p>Now understand the $1 I am using as an example is arbitrary, it may be $1.50, or it may be $0.75, but whatever the number, it is absolutely going to be more than they paid.</p><p><br /></p><p><br /></p><p><br /></p><p>Yeah, but that&#039;s about as likely to happen as my home is to get hit by an asteroid. They don&#039;t buy that much silver at once. They buy enough to meet their estimated orders at a given time and that is it. So unless there is a catastrophic drop in the spot price in a very short time, that is never going to happen.[/QUOTE]</p><p><br /></p>

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