PLease reply to this idea I had for accumilating miles without flying. Buy gold (bullion or coins or other precious metals of your choice that accept credit cards for purchase) coins and then sell them back to the/a dealer. Repeat this process over and over untill you have acquired tens of thousands of miles (or even hundreds of thousands). This is considering that you are using a credit card that gives you at least 1 mile for each dollar spent and allows you to aquire unlimited amounts of miles. This sounds like cheating so I would like feedback. Anyone tried this yet?

ie. Buy five 1 ounce Gold coins for $250 x 5 = $1,250.00 = 1250 miles (just an example price..I didnt check the price of gold as of today). Sell the coins back to the dealer you bought it from (or another dealer). Pay your credit card bill, repeat the process an unlimited amount of times (depending on the restrictions of your frequent flyer credit card). Do this 20 times a month and acquire 25,000 miles. You end up paying nothing. You can even do it all over the internet which is great. You dont even have to leave your computer to aquire the miles. Feedback please.

FlyerGod


Question : Will the gold dealer charge the credit card as a cash advance or a credit purchase (sorry forgot to ask). Are there any problems with doing this to get free miles? Feedback please.