via Kitco - OTC Precious Metals Sales

You might question why over-the-counter precious metals sales might not have obtained spot prices with Waterton, and thus the deal with GBN.V collapsed. Look at Sprott, with their 'buy gold straight out of the mines and avoid bullion banks' theme. They were unable to obtain any premium over spot and resorted to usurious interest rates for gold-based lending for miners.

Why? Its not difficult. Bullion banks need only distribute a few gold bars filled with tungsten to maintain their monopoly and regulators will do the rest. You cannot legally sell bullion bars over the counter in the USA. You need to be an established coin and bullion dealer with access to spot markets taking delivery or a bullion bank or the U.S. mint.

Otherwise, you have no gold to sell. You can run a ponzi scheme not buying bullion at all, and just claiming you do, making off with people's money. Or you honestly intend to take delivery of bullion for clients, but find that you can't just buy it with complete ease like so many other commodities.

You probably need a bank to lend you money that has a bullion desk in Canada if you want to make a go of it, regardless of Sprott's or Waterton's reputation. So you'll need to show profitability and perhaps a bankable feasibility.

http://www.cftc.gov/PressRoom/PressReleases/pr6503-13

-F6