Diversifying assets is a must in such unstable times. Fiat currency helps in the short run, but never in the long run – after all, most currencies are set to fail at some point or another – based on history, of course.
With these thoughts in mind, diversification is often the key to more successful backup plans. The idea is to diversify your wealth, so you can live comfortably even if unexpected situations arise.
While there are lots of options out there, two of them stand out in the crowd. Digital coins represent a modern category these days, while precious metals represent the other one.
Cryptocurrencies are quite common these days – more and more stores accept them. They are more popular among young investors, but the market is too new and volatile. You could go broke overnight.
Other investors have turned to precious metals. After all, these metals have been around for thousands of years – before the first money showed up.
There is only one major issue with metals like gold and silver – they are relatively limited in terms of practical uses.
For example, you could go into a store or shop online and actually be able to make a payment with digital coins. You cannot do that with silver or gold.
Imagine carrying a heavy bag of gold to your favorite restaurant for a fancy meal with your partner, or imagine walking through a bazaar with a bag of silver coins – risky, difficult, and unpleasant.
Given the fact that precious metals are not too liquid, you can now choose a gold bullion credit card – the type of card that allows you to convert metals into fiat currencies.
The card is more and more common in different institutions – both banks and other similar institutions. While not a must, it helps as a backup solution anytime, anywhere.
Concept of a Gold Bullion Credit Card
A gold bullion credit card works like any other credit card. It basically allows you to borrow some money, but you do it against silver and gold. The same goes for debit cards – however, you need to own those precious metals in the first place.There are investors out there who need such a credit card because liquidating precious metals will bring in high costs. On the other hand, other investors invest in debit cards simply because they own high amounts of these metals.
Those who get gold bullion debit cards expect prices to go up – as always, so the card makes an accessible option to a growing market. Either way, such an institution will allow you to use its precious metal storage account, rather than hold silver or gold bullion at home.
Just like with fiat currency, it is important to know that a gold bullion credit card allows you to use it without actually owning these metals. With all these, it is important to understand how this card works and what its benefits are.
How the Gold Bullion Card Affects Investors
The truth is most investors will avoid using a gold bullion credit card or debit card. Indeed, some of them may keep such cards as a backup for unexpected situations, but they will try their best to avoid using them for some obvious reasons.First of all, with a debit card, you basically free up cash by leveraging your current investment. Now, leverage could be a problem because it is addictive to have cash whenever you need it. It makes you forget about your investment and can reduce the positive returns of precious metals overtime.
While not always a general rule, markets tend to stay irrational longer than you can be solvent. Therefore, if you store silver or gold, you need to keep this idea in mind. If you are the type, who likes flashing and showing off, a gold bullion credit card or debit card will ruin your investment.
Sure, this is the type of risk that mostly depends on you only. But then, temptations are high. If you want things now, you are more likely to use your gold bullion credit card, rather than get money in different ways.
You should also keep in mind that the average investor will not put money in a gold bullion debit card with potential risks – basically, you need to consider the interest you may need to pay for a credit card, which could seriously harm your finances.
On the other hand, if you already own these metals and you are interested in a gold backed debit card, you need to think about the purpose of your investment in the first place. If you are trying to diversify your assets, have an insurance policy, or some backup, it would be a bit silly not to hold the metals.
What makes the gold bullion credit card more tempting that the debit card is the fact that gold gains in value at a slow rate. Therefore, based on the interest rate, you may end up paying less in gold than in an actual fiat currency.
The Benefits of a Gold Bullion Debit Card
If you already own these assets and you are interested in a gold bullion debit card, you should be aware of the main benefit of using it. You practically use the assets you own to borrow fiat currencies against them. Many cards come with an APR under 10%, but the debt can still add up.Those who owned gold before the significant change in 2011 will find the gold bullion debit card quite useful. They can get a bit of liquidity until prices stabilize a little. They can exchange their assets through an institution without too much hassle – convenient and easy, just get to an ATM.
Sometimes, the card itself could be worth money as well. For example, some institutions provide high net worth individuals with 24-carat solid cards if their deposits are significant in size – not every bank does that, though.
Then, you can also find exclusive cards featuring diamond studs. At the end of the day, the design of the card will not make too much of a difference – this is just another way for you to show off and lose an investment.
There are other solutions if you are not the flashy type of investor. A classic card is similar to what you may already have. However, unlike traditional cards, it allows you to spend gold, rather than fiat currencies.
Using a gold bullion card to store precious metals
A gold bullion credit card allows you to borrow money, while the debit one allows you to spend what you already have. From many points of view, the debit card is suitable for those who like to invest, but struggle with storage.Basically, storing gold at home can be difficult, especially if you have lots – you may need insurance, not to mention the risk of theft. But at the same time, owning gold with such a card will also cause a bit of anxiety. If you want to buy gold or silver with traditional money, you want to see it – hold it and touch it.
This is not just unsafe, but also extremely challenging. The word spreads, especially if you are the flashy type. You do not want to be a target for thieves, just like you do not want to spend money on a hefty insurance policy for your gold – that, if you can actually insure it.
Should you choose this option for your investment, make sure you deposit your money in a safe account. You want extra security and a reliable institution to look after your money. Besides, the wealth can seriously grow based on the gold rate inflation.
What it means to own the actual gold
If you are interested in actually holding the gold in your own hands, you need to get in touch with a service that sells it to the public. Sure, you could buy small bars, gold coins, or jewelry, but the investment is too high for the value of gold – you do not want to pay for the design of the jewelry, too, do you?Dealing with a meticulous and professional institution will come with security, but also some requirements. For instance, you need to maintain specific records regarding your investments. The institution may want to know where your wealth comes from.
There are some fees involved too, whether you use a bank or a mint. You will usually have to deposit your money upfront, and then you will get the gold. Banks will also ask for other details regarding the investment.
If you go for silver or gold banking, you need a reliable company. Some banks use applications that allow making deposits or quick investments with fiat currencies, which will be automatically transferred into silver or gold – whatever you choose.
Balances do fluctuate, but overall, gold has always gone up. Sure, there might be a dip here and there – you may lose some money in the short run. But in the long run, chances are your investment will gain in wealth – unless you waste it on a gold bullion credit card or debit card.
How to Get a Gold Bullion Credit Card or Debit Card
Gold-backed credit cards or debit cards work like traditional cards. When you get a debit card and use it, your bank will record the request and give you the cash – it will also reflect on your bank balance straight away.Now, the gold bullion debit card works in a slightly different manner, but the process is pretty much the same. There are a few more steps though. Use the card, and your bank will first convert the purchase into its value in gold. Then, the money will be taken out of your precious metal storage account.
The process is not too complicated – if you have used a traditional card before, you should have no issues at all. Making purchases is simple, but setting up the account can be a bit more challenging because not everyone can get such a card.
Before getting the card, you will need an account. Find an institution that allows such cards and buy some silver or gold. There is usually a minimum deposit, which varies from one institution to another – some banks come with minimum requirements, such as $100 only.
Now, while some institutions will have no restrictions or requirements regarding the precious metals, some others will require you to make these investments in house. Buying precious metals from a different source implies transportation, storage, and other logistics expenses.
Making your deposit means the bank will set aside the investment in a different vault – secured and assigned to you. Some institutions choose to store gold in different jurisdictions – for instance, Switzerland is the most popular choice because of its stability.
This is not a general rule though. You may also find institutions storing gold locally. All in all, once you get over the investment, you will be given the gold bullion debit card, which you can start using straight away. The credit card is similar, but more difficult to get because you basically borrow money against gold.
Now, getting a gold bullion credit card or debit card is not as simple as it seems because there are not too many institutions offering such services. Sure, you need to diversify your assets, and while you can get silver and gold pretty much anywhere, the card is not that common.
As more and more investors try to find ways to make their precious metals more liquid, a few institutions have simplified everything by streamlining their services. This way, you can get everything you need in one go.
Before exploring some of the top providers on the market, you should know that banking laws in the USA could cause you some limitations if you are a citizen. Many foreign banks restrict Americans because of the harsh local laws – it is still worth a try though.
GolVerCard
GolVerCard has top-notch service and has specialized in providing gold bullion debit cards to its customers. It is one of the pioneers of this industry and has gained an incredibly good reputation over the past years.Furthermore, this is the one and only institution out there letting clients use their assets to fund the card due to the different locations of its secure vaults. But at the same time, you can also buy gold and silver directly from the provider.
Despite being a top provider, GolVerCard will not overwhelm you with fees and taxes. For example, the initial deposit – one of the main concerns among new investors – is relatively low and set at $100. Even if it goes up, it will not be a significant change, so it is quite affordable.
Now, what do you need to know about transactions? How much money are you going to pay? Nothing. Transaction fees are nonexistent in GolVerCard. Backed by both Mastercard and Visa, you basically use this card anywhere in the world.
If you are the flashy type, you will get a fancy card based on the investment. Make a $10,000 investment, and your card will be made of actual silver and gold – quite heavy, but definitely impressive. Make a $30,000 investment, and your card will be based on a 24-carat gold card.
Bottom line, GolVerCard stands out in the crowd with its super low fees, the backing from major card companies, low minimum requirements, and the option to use your own gold and silver to fund your new card.
VeraCash
VeraCash is another great opportunity to get your gold bullion card. It is a user friendly service with excellent fees and knowledgeable customer service. Moreover, everything is manageable through an intuitive application.Feel free to link your debit card to it, and you can make purchases whenever you have some extra money on your hands. What makes VeraCash stand out in the crowd is the way it manages clients' portfolios and accounts.
Now, the system could be a bit difficult to understand. Make a deposit, and your fiat currency will be used to purchase precious metals – in grams. But then, the balance is given in VeraCash units – the equivalent to the euro.
There are no minimum balance requirements involved, while transaction fees are relatively low. Fees are more likely to hit you when you make an investment. Buy gold, and VeraCash will charge you 3%. Get silver, and you will pay 7%, as well as 10% for diamonds.
Then, there are a bunch of small fees too – such as for replacing the card. The company is good in Europe and makes a good starting point for new investors, yet big investments are likely to be crippled by purchase fees.
Euro Pacific Bank
Euro Pacific Bank is probably the most popular option out there because it has been around for ages and has built a top-notch reputation. It offers premium services and represents one of the first institutions to provide the gold bullion credit card and debit card.The gold bullion debit card service is quite new. The precious metal account system is old and well established. The bank carries a license from Perth Mint, which is where it stores precious metals. The initial deposit is only $500.
Fees for buying and selling precious metals vary between .5% and 4%. They could be small, but they may also ruin a large investment. You will also pay just under 1% per year for silver storage – another expense worth some attention.
The gold bullion debit card is not free, but it will cost around $150 to issue. All in all, given all the fees and deposit requirements, Euro Pacific Bank is a suitable option for experienced investors who need a professional service. It may not be the cheapest, but it is the most professional one.
Glint
Glint is convenient and user-friendly but also suitable for both newbies and investors. It comes with its own mobile application, so managing your card, deposits, transactions, and other account features can be done over your mobile device.Based in the UK, Glint seems to be aimed at new investors, yet anyone can use it. You can use the application to make deposits and fund your debit card. No matter what precious metals you are after, you will pay .5% in fees for all your purchases and exchanges.
When opening an account, you can invest anything. There are no minimum requirements at all. You can use this option to play around with the card, find out how the system works, and maybe get used to the investment industry before making a full commitment.
There is great potential for the company in the future, but there is one drawback. It is mostly suitable for those who have British pounds. Otherwise, you will need to make a conversion, which may cost you more money per transaction when making investments.
On the other hand, those based in the UK or other countries with easy access to British pounds will find Glint a good choice to get seasoned. They will learn more about gold and how to invest, but also how a gold bullion debit card will affect them.
As a short final conclusion, finding a gold bullion credit card is a bit more difficult, but not impossible. However, you practically borrow money against gold assets – other precious metals are also accepted, but mostly silver.
On the other hand, the debit card is more common, and while the trend is still catching up, there are quite a few institutions offering such services. The above-mentioned companies are among the front runners, but you could also find local institutions offering gold backed cards.
You need to remember one thing when getting a card, though. Should you go for a debit card, you will basically spend your own gold and silver investment. While it could be helpful at times, it is not the best idea if you are after long-term investments.
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