Related: Compare credit cards in Canada
Using a credit card to buy gold
You can usually buy gold with your credit card - but it might be more expensive.
Some gold dealers won’t accept credit cards for two main reasons: high processing fees and the increased risk of fraud. However, you’ll find some dealers, especially those online, who will accept credit cards as a method of payment – but the gold will likely cost you more than if you used cash, cheque or direct deposit to pay for it.
If you’re looking to use a credit card to buy bullion, watch out for potential restrictions.
- The dealer may set purchase limits. The dealer may set minimum and maximum purchasing limits. For example, they may require a purchase between $100 and $5,000.
- Some card networks may not be accepted. Some dealers may only accept Visa and Mastercard branded credit cards, while American Express may not be accepted due to higher processing fees.
- You may pay more when paying with credit card. When you use plastic, the dealer pays a processing fee to their bank. This is why it’ll likely be more expensive to buy gold with a credit card or a service that uses credit cards such as PayPal. Paying with cash, direct deposit or cheque is usually cheaper.
Why you should and shouldn’t buy gold with a credit card
Buying gold with a credit card can often be summed up in one phrase: faster, but more expensive.
Why you might want to buy gold with a credit card:
- Speed. It could take several days for a cheque to arrive and clear, but a credit card payment often clears within one business day. Paying by credit card is also typically faster than a bank wire transfer.
- To meet your card’s minimum spend for a signup bonus. Many signup bonuses require a minimum spending requirement — sometimes thousands of dollars over a short time period. Buying gold with your credit card could help you get closer to the bonus. Just make sure the pricier cost of paying with a card doesn’t erase what you’ll earn in points, cash back or miles.
- You don’t have the savings or cash on hand right now. Since your credit card comes with an interest-free grace period, you could potentially charge the gold to your card and pay it off in a few weeks time once your credit card bill is due.
Why you might not want to buy gold with a credit card:
- Higher cost. Gold usually costs more when you purchase it with your credit card. This is because the merchant will be charged processing fees and will likely pass them on to you for the convenience of offering a credit card as a payment method.
- You want credit card rewards. It may be fun to accumulate rewards points or cash back faster, but the pricier cost of paying with your card will likely decrease the value of what you earn. The exception to this could be signup bonuses, which can give you a big win in points, cash back or miles.
- You won’t be able to pay off your balance. If you know you won’t be able to pay off your credit card balance in full, you should avoid charging the gold to your card. Find another method or reconsider your purchase.
How to buy gold with a credit card
Buying gold with a credit card is similar to paying for any other online purchase. Just fill out the checkout form with information including your name, contact details and your shipping and billing addresses. You’ll need to check off your payment method as a credit card and enter your credit card information. This information will include your full name, your credit card number, the expiry date and your CVV number.
Other payment methods to buy gold
- Debit card
- Wire transfer
- Cheque
- PayPal
- Cash deposit at a participating bank branch
- Money order
Frequently asked questions
More resources on Finder
More guides on Finder
-
Compare Rogers credit cards
Learn how you can compare Rogers credit cards to get the best card for your unique financial situation.
-
Credit cards with no credit check
Despite your credit history, it is possible to get a credit card without a credit check. Here’s how.
-
4 best credit cards for fair credit in Canada
Check out the best credit cards for fair credit, and learn how a fair credit score of 560-659 can impact your card options.
-
US dollar credit cards in Canada
Do you travel, work or spend money in the US frequently? Find out if a US dollar credit card is the right fit for you.
-
Compare Coast Capital Savings credit cards
Compare the pros and cons of no-fee, low-interest and travel rewards credit cards on offer from Coast Capital Savings.
-
Using a credit card internationally
Going abroad and wondering whether you can use your credit card while travelling? Here’s the lowdown on credit cards vs. cash, fees, and which cards to get.
-
Best credit cards for teens under 18 years old
Find out how old you have to be to get to get a credit card in Canada and learn how your child can qualify if they’re under 18.
-
Best instant approval credit cards
Find out how you can apply for a credit card and get a response within 60 seconds.
-
Credit card insurance
Why pay for insurance? Credit card insurance has you covered when you travel, for purchase protection, extended warranties and more.
-
Credit union credit cards
Our guide covers what a credit union credit card is, how it’s different from a bank’s credit card, the pros and cons of having one and more.