Here's a (sort of) recent post on the issue, should answer most of your questions http://cakecentral.com/cake-decorating-ftopict-618301.html
although this older post has some info as to why they can't be sold in California (they aren't illegal here but retailers are afraid of being sued) http://cakecentral.com/cake-decorating-ftopict-612012.html
How to make your own http://cakecentral.com/cake-decorating-ftopict-616020.html
I'm not sure if it was discussed on the above thread, but technically silver luster dust isn't meant to be eaten. However they now sell "platinum dust" which is 100% food safe. I bought some and it worked great to make silver (although note, the silver color using ANY luster dust is a little duller...i.e. less like a "mirror shine" than you get on real dragees). If you use platinum dust you need to color the fondant grey first as the silver color will otherwise look white. I actually thought I got the wrong stuff til it went on my grey fondant, then all was good
eta: a great thread on "to eat or not to eat" http://cakecentral.com/cake-decorating-ftopict-612168.html
Thanks so much for all that great information! I had done a search, but guess I didn't go deep enough to find the forum info. This is a huge help!
Quote by @%username% on %date%
%body%