Gold has always been the most preferred and prized metal among all precious metals due to its special qualities. From using it as currency to making jewelry from it or for industrial use, gold has held high regard for centuries. In today’s modern world, even though we have numerous investment options, investing in gold has always been the number one choice for investors owing to its value in the long term.
The real question in contemporary times is, what is the quick and convenient way to buy gold? Based on popular opinion, the answer to that is to buy gold with a credit card.
Personally speaking, I’m not in favor of buying gold with a credit card because you end up paying a higher premium which doesn’t justify your investment, and we’ll get into that in detail in this article. However, with the growing demand of customers for cashless payment, gold dealers provide various cashless transaction options for the ease of their customers. At Bullion Trading LLC, we accept Visa, MasterCard, American Express, Discover, and Paypal credit and debit cards. Now, let’s get into the nitty-gritty of buying gold with a credit card.
How To Buy Gold Using A Credit Card
There is a process to buying gold with a credit card that you must be aware of before investing. This guide mainly informs new investors about the journey of buying gold via credit card and its additional fees.
Step-by-step Guide to Buying Gold With a Credit Card
When you decide to use a credit card for your gold purchase, here are a few guidelines you must consider.
Finding a reputable dealer
The first and foremost step when investing in any precious metals is to look for a reputable and trusted gold dealer. We are spoiled for choices with numerous physical gold dealers and online dealers. So you must do the due diligence and conduct thorough research on the gold dealer, read customer reviews, and read up on the company to ensure the dealer you’ve considered is right for you. Also, read the credit card policy of each gold dealer because every company has its own rules for credit card payment.
Price Comparison
Post the ordeal of narrowing down some reputable gold dealers, you can then compare the prices they’ve listed on their gold bullion. I strongly suggest you compare the gold prices as the prices differ from dealer to dealer. After comparing the prices and reading the reviews, you must finalize the gold dealer with the best deals and an excellent customer satisfaction record.
Completing the Checkout Form
After selecting the gold dealer, the real journey begins to buy your preferred gold bullion. To buy gold online with a credit card requires you to give additional information besides the obvious financial details for the checkout form. The additional information may include your name, address, phone number, and identification documentation.
Filling Out The Credit Card Details
Once you’ve filled in the required details, proceed to the checkout page to complete your purchase. Since you’re buying gold with a credit card, you must submit your credit card details to proceed with the purchase. I want to reiterate that you must read your gold dealer’s terms & conditions and privacy policy to be cognizant of their purchase structure.
Completing the Transaction
After completing your order, you only have to wait for your delivery to arrive. If you’ve purchased physical gold, you’ll receive it on the date stated by the company. Make sure you understand the credit card rules regarding the payment so that you pay off the amount on time and negate the interest. Which gold dealers accept credit cards?
You need to note that not all gold dealers give you the option of credit card payment. So, first, see to it that the gold dealers you’re considering have a credit card option.
Advantages of Buying Gold with a Credit Card
Credit cards have become a favorable payment method for most because they cut down the shenanigans; you enter your card details, and your payment is completed. Go through the notable benefits when you buy gold with a credit card.
Payment Convenience
To buy gold using a credit card in-store or online is touted as the most convenient option because you no longer have to worry about carrying around a great deal of cash or cheque. Also, when you buy gold online with a credit card, you get a straightforward payment option to secure your investment, reducing any hassle with online purchases.
Deferred Fee Option
Buying gold with a credit card also offers you the option to defer your payments, allowing you to spread the amount you have to pay over installments if paying the whole amount doesn’t suit your current financial situation.
Secure and Safe
When you buy gold with a credit card, you have high protection against theft and scam. At Bullion Trading LLC, the security of our customers is our main priority, and we follow a strict protocol to ensure your credit card information is secure to prevent any banking fraud and identity theft. The icing on the cake of buying gold with a credit card is the protection the credit card companies provide to the customers against probable issues.
Disadvantages of Buying Gold with a Credit Card
Although buying gold with a credit card is top-notch in security and convenience, it is essential to note that it does bear some substantial disadvantages.
Fee
The main drawback when you buy gold with a credit card is it requires an additional fee for processing. Depending on the gold dealer, a stipulated fee will be charged with the transaction using a credit card, which increases your sub-total amount and adds extra cost just because you’re paying via credit card.
Interest
With credit card payment, if you opt for deferred payment, you should also be prepared to pay the interest charge on your balance, and it increases the overall amount you’ll end up paying. Do consider this aspect when you make the decision to defer payment of your gold.
All things considered, while credit card payment for gold and precious metals has the benefit of direct and well-protected payment, you must also consider that your payment amount increases due to the processing fee and interest. So, you must evaluate your financial situation and consider the long-term implications it can have before you make the decision.
Alternative Ways to Buy Gold
Buying gold with a credit card is one of many options that gold dealers provide you. There are numerous other payment options that you can go for based on your situation. Only some will be comfortable paying the additional fees, delayed transactions, or needing personal information when buying with a credit card. Based on your priorities, you can choose amongst the various payment options gold dealers provide.
No need to go looking for the alternate option anywhere else; continue reading as we’re here to guide you through it all.
Debit Card
Most gold dealers provide debit cards as a payment option. Although debit cards also come with processing fees, just like credit cards, the processing fees of debit cards are comparatively lower than credit cards.
Wire Transfer
Wire transfers can also send money electronically through your bank to pay for the gold you’ve purchased. They are a faster payment method than any other electronic payment option and are ideal for large investments.
Cash Deposit
If the gold dealer you’re purchasing from is close to your locality, then the most comforting and safe investment option is to pay it through cash. You simply give the dealer the cash, and just like that, the whole payment process is completed.
What To Look For When Buying Gold
People invest in gold for various reasons, whether to diversify their investment portfolio or protect their wealth when economic uncertainties hit. So, you must be cautious of certain factors when buying gold to ensure you are making a smart investment.
Purity & Weight
The most important thing to know is the purity of your gold. It is measured in karats (kt), so you must know the karat of gold you’re investing in. The purest form of gold is 24kt, which is 99.9% pure and carries high inherent value. Even so, 22kt, 18kt, and 14kt gold are also used for jewelry and investment purposes.
When we purchase gold, the price is determined by the weight of the metal, and the market value of gold changes from time to time. So, before you purchase your gold, verify the market rate, purity, and weight, then only proceed with buying it.
Authenticity
Purchasing gold is a huge investment because it is not a cheap investment. So, do check for the authenticity of your gold which is determined by hallmarks or stamps to indicate its authenticity and purity.
Purpose
People invest in gold for different reasons. Some buy gold to convert them into jewelry of their liking, and store it as an investment, for gifting, or for other reasons. Know your purpose and purchase the type of gold you want to invest in accordingly, so you don’t make an impulsive purchase.
All in all, investing in gold has always been a wise investment choice, with numerous options to pay for your gold online or in-store, such as buying gold using a credit card, debit card, and others. Although when you buy gold with a credit card, the speed, security, and financial comfort you get as a gold investor are unbeatable; you will end up paying more than the going rate.
And for the gold dealer to buy you gold, we at Bullion Trading LLC offer you a wide selection of gold and other precious metals, along with a wide range of payment options. To add to that, you’ll also receive a fully insured delivery for your gold order. Don’t wait anymore and get the best deals on gold products from us!
Frequently Asked Questions(FAQs)
Can you use a credit card to buy gold?
Many gold and silver dealers do not accept credit cards for two reasons: exorbitant processing fees and greater fraud risk. You will, however, discover some merchants who will. If you want to move quickly with your precious metal investment, a credit card can be the ideal solution.
