Comments on: Gold Backed Credit Cards …. Really?

By: Chris K

Chris K — Mon, 28 Nov 2011 04:06:54 +0000

I stumbled across this article after Googling “Gold backed credit card”. We have a significant amount of cash and want to convert it all to precious metals. I have been looking into credit cards backed by gold but I would never put all of my metals into an account for the credit card, just enough to pay bills, travel, shop, etc.

What I want to accomplish is to reduce the cash I need to have on hand. It would be a lot easier to do this if I had a credit card that pulled payments directly from my gold account. I agree that cards that are backed by equity are typically only attractive to those with little or no credit but this would be different. If I could find a Gold backed credit card that offered a 30 day grace period, was bonded and insured, and was well-branded (Visa, M/C, etc) I would sign up.

I know that some type of storage fee would have to be charged but I would be okay with that. If (when) the current financial system comes to its inevitable demise I would already have as much of my liquid in gold as possible. The only thing that would make this better would be a convenient way to reload the card, such as a physical location such as a bank.

I see this as the only practical way to be able to engage and participate in society while preparing for a complete devaluation of its currency. And who knows, if metals increase in value this would be the only card that I know of that could pay me to use it.

By: VICKEN

VICKEN — Sat, 27 Aug 2011 07:50:15 +0000

THIS IS A HORRIBLE IDEA. ARE YOU KIDDDDDDING ME? HOW ELSE ARE THESE COMPANIES GOING TO STEAL FROM US. KEEP YOUR GOLD BETTER YET BURY IT AND DONT DIG IT. LET YOUR GOLD ROT. IF THATS EVEN POSSIBLE.

By: Stan

Stan — Thu, 08 Apr 2010 00:30:27 +0000

I concur with the author, it seems like one of those deals ‘too good to be true’, and probably is.
My guess is that most people will misuse it and lose their gold hoard (or promise of gold) and end up deep in debt and bankrupt. Then, if the assets don’t cover costs more gold will evaporate. This might work as long as it is ponzi-backed.
I’ll take anyone’s gold and promise a 75% asset value credit card, why not, since all other credit cards are 0% backed. Wonder what would happen if gold dropped below the value charged on the CC? My guess is that someone will suffer and it won’t be the ‘creditor’.