There are many options for consumers for a gold-backed debit card, these range from cards made from solid gold or even American Express gold cards. It provides a way for people to invest in precious metals and gold bullion without owning actual gold.
However, some cards let a person buy gold bullion and borrow against it to get the best credit rating possible. Today’s article highlights how to get a gold-back debit card and the benefits of owning one in this day and age.
What Is a Gold-Backed Credit Card?
Gold-backed debit cards allow people to borrow money against the gold and silver they already own. Some people may do this because the cost of liquidating their precious metals may be high, or they already own a significant amount of the asset.
Others may do it because they expect the price of gold to go up. Either way, gold debit card services let individuals use the company as a precious metals storage account instead of holding their own gold bullion bars at home.
If someone is wondering if they can use these cards without owning precious metal assets, the answer is a resounding yes. However, it is crucial to understand why this card is essential and the benefit of using it for a transaction.
Why Should a Person Know What Gold Back Debit Cards Are? How Does it Affect Average Investors?
The fact of the matter is that day-to-day retail investors don’t think about freeing up cash flow by leveraging existing investments. Leverage is addicting and a possible destructive way of increasing gold and silver returns over the short or long term.
In most cases, markets can stay irrational longer than a person can stay solvent, so it’s best to be aware of that if someone has gold stored. If the individual is the flashy type, a gold-backed debit card may be something that gives them bragging rights.
It’s good to note that the average person may not sustainably invest in a gold back debit card with a risk-adjusted return higher than the interest they might pay. Furthermore, if someone owns gold and silver as an insurance policy, it would be silly not to hold it fully.
What Is a Gold-Backed Debit Card Good for?
A precious metal debit card is good for one primary thing: using the assets someone owns to borrow against them. Most gold-backed cards offer an APR below 10%, but paying for the collateralized debt is still a lot.
People who did purchase gold before the considerable dip in 2011 may find a gold-backed debit card appealing as it gives them a chance to gain some liquidity in the meantime. They can exchange their gold assets for fiat currency through one of the investment banking services that offer these cards.
Some companies offer a gold-backed card that is solid 24-carat gold if the person’s initial deposit exceeds $30,000 or more. More esteemed exclusive cards come in a diamond-studded design that allows someone to use gold’s purchasing power for everyday transactions.
However, for someone who is not the flashy type, there is a less complete but effective solution for them. It comes as the Glint or Euro Pacific bank, similar to regular debit cards, except it allows a person to spend gold.
Using a licensed dealer and card backed by gold provides a reliable form of secured storage for your American dollar.
Storing Precious Metals with a Gold-Backed Debit Card
Most people worry about the safety of their precious metals when stored on gold-backed debit cards, and rightfully so. If someone needs to buy gold or silver coins with fiat currency, they may expect to hold the asset in their own hands.
On the other hand, this can be unsafe and challenging if they own a significant amount of gold or silver bullion. The person may want to receive compensation and apply systemic risk while holding such high-value assets.
Customers looking for the above option for their investments should deposit their money in a Glint Mastercard account because it can provide additional security. Besides that, their wealth investment can grow exponentially as the world’s gold rate inflation increases.
Owning Actual Gold
People who want to own physical gold need to contact a service that sells gold to the public, such as the Perth mint. When dealing with such meticulous companies, people must maintain accurate information regarding their cash investments.
It is good to note that fees involved in purchasing gold through a mint or most banks (such as Glint or Euro Pacific Bank) require that you deposit money first before receiving the gold. In most cases, the bank asks for the individual’s credit card information and other details regarding their investment.
If someone is after silver banking, a company like Euro Pacific bank is one of the best services in the entire universe. It has a user-friendly app that allows people to deposit money into a bank account and automatically converts it to silver’s value.
There are many opinions expressed around the world regarding using silver coins or gold banks to save someone’s money. The balance can fluctuate, meaning investing in gold or silver can be a risk unless the individual is doing it long-term.
Currencies, such as dollars, can be converted to gold easily but fluctuate if there is an economic crisis. That means the value of the gold may be different from the purchase date on which they acquired it.
Investing in gold-backed credit has its advantages and disadvantages. It allows someone to store their gold in one place instead of multiple accounts, and it also allows users to spend, fund, save or sell gold through a convenient, streamlined app or wallet.
Banks worldwide have offers listed as equivalent to the services mentioned above on normal debit cards that mimic the style of other more significant gold-backed credit card institutions.
Free services like the Glint Mastercard are one way of having a savings vault for gold and giving users instant access to it at the press of a button. Take the first step by signing up and discovering a secure way to store gold and start paying for daily activities with interest earned.
Other Gold Articles That You Might Like
If you’re looking to learn more about investing in gold, then you’re in the right place. The articles listed below are where I would start. If you have any other questions, just contact me here.