gunDriller
12th April 2012, 01:31 PM
JP Morgan Chase has a VISA credit card with the first 15 months interest free.
I just got applied & got one, for the sole purpose of buying PM's.
Of course, they could screw me in the small print. My understanding is, if I make at least the minimum payment AND pay off any purchases I make during major down-ticks that occur in the next few months, I can buy some extra PM's.
I set a threshold, Gold @ $1620. With silver at $31.50 the last few days and gold getting down to $1640, it was tempting, but I am waiting patiently to hit my target price.
Anyway, I was wondering what it would take to use their credit card to break their short position.
Let's say a nominal income of $50K & a credit line of $3000. If 1000 people took out the credit card and bought silver with it, no big deal, an EXTRA $3 Million in silver taken out of the system. With a delivered price per ounce of $33, that will buy the group 90,000 ounces.
If 10,000 people did this, 900,000 ounces.
100,000 people - 9 Million Ounces.
Of course, with the 100:1 Paper/ Physical ratio, that would mean 900 Million paper ounces leaving the system. More than a year's production - UNLESS the Paper/Physical Ratio were to increase.
In any case, we will see what happens with my own card. :)
Side note - APMex is selling Johnson Matthey 1 ounce bars for $1.49 over spot, today Thursday April 12.
I just got applied & got one, for the sole purpose of buying PM's.
Of course, they could screw me in the small print. My understanding is, if I make at least the minimum payment AND pay off any purchases I make during major down-ticks that occur in the next few months, I can buy some extra PM's.
I set a threshold, Gold @ $1620. With silver at $31.50 the last few days and gold getting down to $1640, it was tempting, but I am waiting patiently to hit my target price.
Anyway, I was wondering what it would take to use their credit card to break their short position.
Let's say a nominal income of $50K & a credit line of $3000. If 1000 people took out the credit card and bought silver with it, no big deal, an EXTRA $3 Million in silver taken out of the system. With a delivered price per ounce of $33, that will buy the group 90,000 ounces.
If 10,000 people did this, 900,000 ounces.
100,000 people - 9 Million Ounces.
Of course, with the 100:1 Paper/ Physical ratio, that would mean 900 Million paper ounces leaving the system. More than a year's production - UNLESS the Paper/Physical Ratio were to increase.
In any case, we will see what happens with my own card. :)
Side note - APMex is selling Johnson Matthey 1 ounce bars for $1.49 over spot, today Thursday April 12.