Using Goldmoney to Manufacture Spend
Edit (04/17/17): I added my AMEX card to my PayPal account since Goldmoney doesn't allow AMEX funding via their credit card form. From the bid price, it is still 2.9%. The only difference is that you can only withdraw the money back to the PayPal account used, and the gold is stored in a special PayPal vault.
Edit (04/14/17): I sold off my 24.571 GAU of gold at a sell price of $40.68/g. The spot price was $41.04/g at the time. There was a 0.5% fee to withdraw to a bank. The balance showed up in my account one day later - super fast and reliable I must say.
Edit (04/10/17): I bought $1,000 worth of gold at a spot price of $40.38, but with a buy price of $41.54 for a total of 24.571 GAU. A 0.5 GAU first-time deposit bonus was included in the 24.571 GAU. The total fees came out to be around 2.9%. This is the same whether you use Visa or Mastercard.
Edit (04/02/17): Goldmoney now charges an extra 2% when funding with credit cards. With the 0.5% transaction fee and the bid-ask spread, the cost comes out to be around 2.9%. Still a relatively good way to MS. I am planning to hold the gold a bit to wait for the price to appreciate to reduce the fees.
Today, I just realized that you could fund a Goldmoney account using a credit card. Goldmoney is essentially a custodian that deals only in physical gold. This is a great platform to meet minimum spending if you want to avoid opening bank accounts or buying cash equivalents. It is highly liquid as well since you can immediately sell your gold after you purchase.
Here are the relevant details
Edit (04/14/17): I sold off my 24.571 GAU of gold at a sell price of $40.68/g. The spot price was $41.04/g at the time. There was a 0.5% fee to withdraw to a bank. The balance showed up in my account one day later - super fast and reliable I must say.
Edit (04/10/17): I bought $1,000 worth of gold at a spot price of $40.38, but with a buy price of $41.54 for a total of 24.571 GAU. A 0.5 GAU first-time deposit bonus was included in the 24.571 GAU. The total fees came out to be around 2.9%. This is the same whether you use Visa or Mastercard.
Edit (04/02/17): Goldmoney now charges an extra 2% when funding with credit cards. With the 0.5% transaction fee and the bid-ask spread, the cost comes out to be around 2.9%. Still a relatively good way to MS. I am planning to hold the gold a bit to wait for the price to appreciate to reduce the fees.
Today, I just realized that you could fund a Goldmoney account using a credit card. Goldmoney is essentially a custodian that deals only in physical gold. This is a great platform to meet minimum spending if you want to avoid opening bank accounts or buying cash equivalents. It is highly liquid as well since you can immediately sell your gold after you purchase.
Here are the relevant details
- It costs 0.5% of the transaction when buying and selling. So your total fee for MSing is 1%.
- Credit card loads do not incur any transaction fees. Goldmoney eats up the Visa/Mastercard/AMEX charges for us!
- You can transfer the funds out into your bank account via ACH or wire transfer.
- You can actually withdraw physical gold as coins and pick it up at specific locations, though you would be charged with shipping.
The obvious risk to this is wild fluctuations of the price of gold. However, I don't see that as a problem if you immediately sell it.
Interestingly, you can buy and sell in various currencies, so it also enables credit card users outside the US to MS.
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