The secret gnome shop (in the railway) buys gems. The black smith also buys bombs and arrows for 2g each and fashions bricks into furniture.

http://i.imgur.com/JO2X8QC.png

info pls

All the loot is being heavily monitored. Prices and spawn rates will be adjusted as needed to meet an ideal daily rate :)

secret gnome shop!!!! ive got alot of searching to do

Elster takes your whole collection

At a reduced price. He's there for convenience(though not every item can be sold at a premium, so he does have a purpose to buy all loot you can't sell otherwise).

I'm a bit confused as to how loot works? Once you get all the loot currently placed does it come back? Does it spawn in random spots in the railroad areas? Does it spawn in the same spots? I'm so confused, isn't loot what comes from the purple chests?

After obtaining flippers, swim around in water on the overworld. Little black dots spawn(client side I believe, that means you don't have to compete with other players as much :D ), these are spots where you can obtain loot assuming you know how to do it correctly.

You can get loot from either the purple chests, chests dropped by bandits, or diving. When diving, the spots that appear randomly spawn depending on certain factors(such as how often you have gotten items in that specific area that day. If you find that spots are no longer appearing, try another area). Purple chests refill every day(as explained by the notes in the bandit cave).

Alright, thanks for the clarification!

THANK YOU!

Where is this secret gnome shop you speak off?

Assuming they're speaking of the zelda like old man, you can find the entrance after bombing a section of the wall on the right when you come into the railway cave from york town.

Updated first post. And thanks for the info Dusty :D

Gem is a type of loots? I never seen before