New credit card aims to attract gold investors
Monday, March 15, 2010
A new credit card product will allow customers to use their gold investments as collateral.
- By Superior Gold Group
People have been paying more attention to silver and gold investment opportunities in recent years because of the strong upswing in precious metals prices as well as economic uncertainty that has made people wary of other options, like equities markets.
Now, one company is even offering a credit card that is based on the gold coins people own. The gold will be used as collateral for cardholders, and their coins will be kept in an insured vault run by the card company.
The credit product is being offered based on recent changes to federal credit card law that some feel could make lines of credit more difficult and costly to open, unless prospective customers have above average credit scores.
A gold-based credit card seeks to assure lenders that there is a lower risk of default for customers who are offering their precious metals as collateral, with the value changing as prices for the precious metal rise and fall. The card company noted that gold bullion coins from all countries will be acceptable for opening an account.
Of course, people can still realize significant gains from silver and gold investments regardless of whether they choose to put it into a credit card account. After all, precious metals are showing considerable strength in recent months because of the mix of industrial applications they are needed for as well as uncertainties in the broader world economy.
The credit card news is also reminiscent of a separate story that has been making national news. In South Carolina, a state lawmaker has tried to jump-start the conversation about dangerously high levels of government spending by offering a bill that would replace federal currency with gold and silver coins.
Concern about government spending is another major reason that dealer gold and other precious metals will remain in demand for the foreseeable future. World media outlets have focused on unrest in Greece in recent days that has revolved around the country’s efforts to reduce its sovereign debt levels.
However, Greece is not the only problem spot when it comes to debt, with several other European Union countries facing their own looming deficit issues, as well as increased dangers of defaulting on those debts. Other countries around the world have encountered their own such problems, while financial experts have long warned of the fiscal consequences that could come from the United States eventually finding its own debt obligations unsustainable.
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Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.
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