RE: RE: RE: How do you buy the notes?Negative. The notes are exactly $100 par value. Minimum purchase is $1,000. It is redeemable for approx 67 oz of silver. Therefore, you pay $1,000 for a 7 yr note that pays 5% interest with a stagered redemption (10% @ 4yrs, 20% 5yrs, etc). The redemption, however, is the greater of the US dollar equivalent of the silver value or $15/oz.
Year 1,2,3: 5% interest
Year 4: 10% redemption i.e 10% of note amount OR 10% of 67oz x market value of silver/oz. (whichever is greater)
Year 5: 20% redemption
Year 6,7: ETC
SUMMARY:
You are buying a call optionon silver that bears interest at 5% and is already $20 in the money. My only concern is what if GCM goes belly up? My understanding is that they will deposit the silver annually in a bank vault for hedging against price increases. I'm not sure if the notes are guaranteed by those ounces.