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<p>[QUOTE=&quot;afantiques, post: 2029130, member: 71234&quot;]On any given day they will own nothing. Or any given week, depends on the dealer and market volatility. Purchases will be hedged, sale will be hedged, and they make the profit on the daily turnover. </p><p><br /></p><p>How far they divert from this model depends on their view of the market and their risk tolerance.</p><p><br /></p><p>If you start the day with no position, trade $200000 with a 3% margin and go liquid at the day&#039;s end, that&#039;s about $6000 you have made during the day.</p><p><br /></p><p>That&#039;s the almost zero risk position. Dress it up with more risk, you have more reward if you get it right, give worse deals and you don&#039;t get the volume to make the margin good enough to cover overheads. Depending on the competition locally, of course.</p><p><br /></p><p>But it would be wrong to think of bullion dealers sitting on great heaps of PMs that they have bought and paid for. The local pawn shop or coin dealer may work this way, but they will hedge the rish with much wider margins.[/QUOTE]</p><p><br /></p>

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