The Bullion Card
Bullion-backed credit cards have gotten complicated with all the reward structures, storage options, and fee debates flying around. As someone who has researched precious metals rewards programs extensively, I learned everything there is to know about earning gold and silver through everyday spending. Today, I will share it all with you.
How They Work
Probably should have led with this section, honestly—bullion cards earn rewards in physical or virtual gold and silver instead of points or cashback. Your purchases accumulate precious metals stored in secure vaults, and some programs let you take physical delivery.
The Appeal
That’s what makes bullion rewards endearing to us precious metals enthusiasts:
- Diversification without active investing
- Inflation hedge built into everyday spending
- Tangible assets instead of airline miles you might never use
Things to Consider
- Annual fees: Often higher than standard rewards cards
- Storage fees: Some programs charge for vault storage
- Conversion rates: Compare how much metal you actually earn per dollar spent
- Metal prices fluctuate: Your rewards value changes with the market
Tax Implications
Precious metals are classified as collectibles for tax purposes. Selling accumulated rewards may trigger capital gains taxes. Keep records of when you earned each reward for accurate cost basis calculations.
Is It Right for You?
Bullion cards make sense if you’re already interested in precious metals and would invest anyway. If you just want straightforward cashback, traditional rewards cards are simpler. Run the numbers on fees versus reward value before committing.
