Buying Gold & Silver With Credit Card in Large Quantity Costs Extra
Credit card companies charge vendors around 3% when they buy gold & silver with credit cards. This is how credit card companies earn money, which is the money they use to give their customers points whenever they use their cards. Many customers prefer to use their credit cards to earn points— however, this is shortsighted since many people don’t realize the points are actually coming from the credit card fees they are paying.
Companies are not allowed to charge any more than this percentage for credit card transactions when customers buy gold with a credit card. To make up for this fee, vendors mark their prices up an extra 3-4%. This fee may be insignificant when you’re buying a latte, but when you’re buying high-ticket items such as precious metals, that percentage can increase your total cost significantly. For example, buying gold with credit cards is likely to significantly increase the costs.
Also, Check Our other blog: A Buyer’s Guide: How To Buy Gold And Silver Bullion
Why Do People Buy Gold Using Credit Cards(Also Silver)
People buy gold with credit cards because they’re fast, easy, and convenient. If you’re buying an ounce of silver as a small gift, for example, credit card fees won’t be a big deal. In some cases, buying gold with a credit card may even be ideal. If you see that gold prices are low and you want to purchase at that price, using a credit card allows you to take advantage of that price and process the payment immediately. Using a credit card for smaller purchases is innocuous, but it should be noted that purchases of less than $1,000 are taxed.
Paying thousands extra on large purchases due to credit card fees is unwise and unnecessary. You don’t want to be paying for your gold or silver as well as the transaction.
Buy Large Quantities of Gold and Silver Using Bank Wire or Check
At Bullion Trading LLC, we offer a discount for check or wire payments to help you save on the price markup. This is the most efficient option to ensure you’re getting the best possible price when you buy gold with a credit card from gold dealers. Using a credit card when you’re investing significant amounts of money in gold or silver is not recommended.
A savvy investor who intends on building a robust portfolio does not pay more than they need to. Do your best to lessen extra fees on your investments so you’re not paying for a transaction in addition to your valuables.
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 a 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.