Summary: The easiest way to buy gold with a credit card is to sign up with an online investment broker that supports gold and accepts credit cards, such as eToro. After creating your account, you can deposit funds from your credit card to the trading platform and buy gold.
Intermediate Traders and Investors
Can you buy gold with a credit card?
Yes, you can buy gold with a credit card at asset exchanges such as eToro. Using your credit card is one of the most convenient ways to invest in gold or other precious metals like silver, as it offers extra security, and most trading platforms offering gold and commodities accept credit cards.
Since your credit card is connected to your checking account, you can transfer funds directly from your credit card to your eToro account.
How to buy gold with a credit card?
The most efficient way to buy gold with a credit card is through a licensed asset exchange such as eToro, a popular platform with over 30 commodities and 30 million users engaged in direct investment strategies.
Before we continue, it’s important to note that eToro allows you to invest in gold CFDs and not physical gold.
How to buy gold with a credit card: Step-by-step
Buying gold with a credit card is simple and takes only four steps:
- Step 1: Sign up for and verify your eToro account (personal or business);
- Step 2: Connect your credit card to your new account;
- Step 3: Go through the mandatory verification process and transfer your funds to eToro;
- Step 4: Head to the Commodities section on the eToro investment platform, select gold, and specify the amount you’d like to purchase.
Intermediate Traders and Investors
Gold price today
Credit card gold policy
There are no universal policies preventing credit card owners from purchasing gold and other precious metals, such as silver, with their credit cards. However, purchases made with credit cards often entail additional processing, merchant, and foreign transaction fees, which might make some other investment methods a more viable option.
In addition, some banks might treat precious metal investments as cash advances, which again implies higher rates, transaction fees, and poor grace periods. Luckily, some financial institutions might offer insurance coverage for precious metals, meaning you’ll at least be insured against theft, damage, etc.
Is gold a good investment?
Gold can be a good investment option if you approach it with the right mindset, that is, if you invest in it as a hedge against inflation and a means to diversify your portfolio.
Gold is most commonly seen as a hedge against inflation. That is, its value tends to increase as the value of your other assets goes down, which can mitigate your losses. Gold can also serve as a counterbalance to your fiat currency.
On the other hand, gold does not generate income with dividends like fiat currencies or other productive assets. That is why it is often used as a way to diversify your portfolio. In other words, if you allocate 5–10% of your portfolio to gold and keep it as a complementary asset, you can have an ace up your sleeve that might lower the risks associated with your other investments.
How to buy gold safely
If you don’t have a lot of experience investing in gold, it would be wise to take some time to become familiar with the asset and learn how to navigate the market as efficiently as possible. To make sure you’re on the right track from the get-go, you should try to avoid errors such as:
- Oversight: Not paying attention is another grave mistake when investing. It doesn’t matter whether you’ve overlooked some important analytics data, news, or the purity of the asset — it can all make your investment fruitless;
- Failure to diversify: Portfolio diversification is among the most important parts of a successful investment strategy, so it is imperative that you learn what kind of role gold plays in it;
Treating gold as a last-second solution: Some investors turn to gold as a reactive measure to economic turmoil, but the nature of gold as an asset implies its uses are completely opposite — it is a form of pre-emptive insurance against potential economic crises.
Ways you can invest in gold
There are several ways you can invest in gold using your credit card:
When buying CFDs, you don’t actually own the asset. Instead, you track and wager on the price differences from the beginning of the trading cycle to its end. On eToro, you can go either long or short.
ETFs are similar to funds, but they can be bought or sold on the stock exchange market. By investing in gold ETFs, you technically become the owner of a fund that holds gold as an asset, so you remove the need to pay fees you would have to pay if you owned gold yourself.
By investing in equities (gold-related stocks), you invest in shares of companies that deal with gold, for example, mining companies. The value of the company share is usually expected to rise together with the price of gold, so you can profit that way, even if you don’t own the metal per se.
Pros and cons of investing in gold with a credit card
- It’s convenient;
- Some financial institutions don’t include precious metals in their cash advances policies;
- Credit cards are typically a secure payment method;
- Considered a good hedge against inflation.
- There can be additional fees;
- Some brokers don’t accept all credit cards;
- You might have to pay some interest rates.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy gold with a credit card:
1. Can you buy gold with a credit card?
Yes, you can buy gold with a credit card by connecting it to a commodities exchange such as eToro.
2. How to buy gold with a credit card?
To buy gold with a credit card, link your credit card to a licensed commodities exchange platform eToro account and transfer the required funds.
3. Where to buy gold with a credit card?
You can buy gold online at various brokerages, such as eToro.
4. Should you buy gold with a credit card?
Whether you should buy gold with a credit card will depend on several factors, such as interest rates, processing fees, etc. If you do want to invest in gold with a credit card, look for reliable asset exchanges such as eToro.