How to Buy Gold Bullion With a Credit Card

You can buy gold bullion with a credit card, albeit indirectly. But first, let's look at what you are going to buy, and why. The price of gold is at an all-time high, and analysts foresee that this price will continue to rise in the foreseeable future. Gold bullion makes an excellent investment, therefore, for those who can afford to purchase it.

There are two types of gold that one may purchase: bullion coins and investment grade gold coins. Investment grade coins are typically purchased by coin collectors, who appreciate their historical value as well as their gold content. Investment grade are such coins as the Saint-Gaudens double eagle (minted from 1907 – 1933) or the Liberty double eagle (minted from 1877 – 1907). These coins can be even more valuable to the collector than the gold bullion coins are.

Gold bullion coins minted in the modern day come in a number of weights. For example, American Eagle bullion coins are issued in 1/10 ounce, 1/4 ounce, 1/2 ounce and 1 ounce, with prices corresponding to the weight.

When purchasing bullion coins, it is important to pay attention to the purity of the gold contained within. Various mints use various degrees of purity. The gold fineness of Kruggerrands and American Eagles, for example is 91.6. The gold fineness of Canadian Mapleleafs is 99.9.

With the cost of gold as high as it is, the question arises, how is one to pay for one's purchases? If a potential buyer does not have enough money in the bank to pay for the gold bullion, is he or she out of luck?

Typically, vendors of gold bullion coins do not allow anyone to make purchases on their credit cards. There is a simple reason for this. Buying gold with a credit card is the same as buying a gold on credit. The opportunities for fraud are too great. There is always a delay between the time an individual purchases the coins, and the time the money is transferred from the credit card company to the vendor. If the owner of the credit card reports it lost or stolen, the purchaser has the gold … and the seller does not have any money.

This is why most gold bullion dealers insist on cash, a personal check – and then wait for it to clear before shipping your gold – or a direct bank transfer.

Having said that, of course you can buy gold with your credit card. All you need to do is take out cash advances from your credit card on a daily basis, until you have enough cash to buy the amount of gold bullion or gold investment coins that you desire.

You then have the gold coins, and a debt on your credit card, which you are obliged to pay.

Source by Nicholas H. Usborne

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