For thousands of years, people have stored their wealth in the form of precious metals, like gold and silver. Not only was it used as currency, it was also used to display status. In today's modern world, gold is used less as a status symbol, and more as an investment. Whether it's in the form of jewelry or mutual funds, gold is still a sought after commodity.
But does it make sense to buy gold with a credit card? In this article, we'll cover the following topics:
- Can you buy gold with a credit card?
- Benefits of using a credit card to buy gold
- What credit card is best for buying gold?
Can you buy gold with a credit card?
Yes! One of the safest and most convenient ways to buy gold in the 21st century is to use a credit card — especially when shopping online. In addition to providing a fast and secure way to make a high-value purchase, credit cards come with extra benefits like rewards, added fraud protection and more.
Benefits of using a credit card to buy gold
Buying gold with a credit card comes with several advantages.
Speed and convenience
Many reputable dealers accept credit cards as payment for gold, just be sure to do your research. It's a fast and reliable way for merchants to receive payments from customers all over the world.
In addition, using a credit card means you won't have to carry a large sum of cash with you to a retail store or gold dealer, making it a much more convenient and safe option.
It can take months or even years to save up for an investment like this. When you're finally able to make your purchase, you want to know the transaction is safe and secure, particularly when shopping online. Credit card issuers offer a number of safety measures to ensure the security of your transaction.
These security measures include fraud protection against unauthorized purchases, and purchase protection (up to a certain amount), which can cover you in the case of theft, damaged products or other potential shipping issues.
In addition, some vendors require credit card users to provide extra identification credentials to prevent fraud. For example, some online dealers require that the shipping address match the credit card billing address.
You can even get travel insurance if you're traveling to purchase gold internationally. If you use your credit card to book eligible travel, you may be covered in the event you experience a flight delay or cancellation, a baggage loss or even emergency medical attention.
Rewards, miles and cash back
Many credit card issuers, including Chase, offer chances to earn valuable rewards on the purchases you make with your rewards credit card. When purchasing gold or jewelry at a jewelry store using your credit card may earn you rewards on those purchases.
You can also use gold jewelry purchases to help you meet a credit card's minimum for a sign-up incentive. This is called a welcome bonus — which may come in the form of cash back, points or miles. You receive this bonus when you spend a minimum amount of money on the card within a specific period of time.
Be aware that some merchants will add a processing fee to transactions that use a credit card.
What credit card is best for buying gold?
To figure out which credit card you should use, carefully review various rewards programs and select the one that will benefit you the most.
For example, the Chase Sapphire Preferred® credit card offers a welcome bonus when you spend a certain amount within the first several months of opening your account. This can be helpful if you are planning to make a large purchase of gold and that amount qualifies you for the welcome bonus.
If you prefer to get cash back or statement credits, consider signing up for the Chase Freedom Flex℠ credit card. With this card you can earn cash back on different rotating categories like gas stations, grocery stores and select online merchants. Plus, enjoy a low intro APR and low annual fee. Find out if your favorite jewelry store is on the list of eligible merchants and the cash back you'll earn from making a purchase there goes right back into your account.
The final golden rule
If you're planning to buy gold with your credit card, you'll want to have the money on hand to pay it back by the payment due date. After any purchase with a credit card, be sure to responsibly manage this debt. To avoid accruing interest, it's best to pay the balance of your credit card bill in full and by the end of your next billing cycle.