Wednesday, April 24, 2019

Credit Cards backed by gold bullion

A new breed of credit cards backed by gold bullion is soon to become a reality in USA. Sweeping changes in credit card industry is set benefit not only consumers, but gold bugs too, who'll be able for first time to charge purchases against 'liquid gold.'

With the new Credit Card Accountability, Responsibility and Disclosure Act going into effect in February, there are many new rules governing credit card lending. This, in conjunction with the fact that gold is currently trading around $1,120 US, some of the highest prices the country has ever seen, has led some lenders to consider creating a new credit card that is backed by gold bullion rather than dollars.

The company recently issued a press release announcing their new card, which will be available soon online. The card, which will be branded by either MasterCard or Visa, will function like a regular credit card, but instead of being backed by dollars, will be backed by the gold bullion coins you have deposited. If you don’t currently have any gold, you will be able to purchase a quantity of gold below market prices at the time of your account opening.

Jeff Silver, Vice President of Gold Solutions Marketing Inc., said, “Those who 'believe in gold' can see the new law reshaping attitudes and conventions about credit cards that will help make this breakthrough collateralized credit card concept a reality in the very near future. They know that gold, which is a hard asset, can provide a higher level of liquidity and usefulness, while positively impacting the financial picture for millions of Americans.”

Gold bullion cardholders will have their coins deposited into a secure, insured vault and will receive the rising value of gold, while the gold serves as collateral for the credit card, which has Silver to believe it’s a “win/win/win” situation.