Buying Gold Bullion with Credit Card

Malkytheheed

Is this "allowed"? Or would it be treated as a cash transaction or somthing similar? 

nyermen

It may depend on the credit card provider (and the information provided by the vendor), but in general, yes, banks count gold as cash (in fact, gold is often managed under Foreign exchange positions for regulatory reporting purposes).

Malkytheheed

Ok, wonder if I can 1% back with Chase... 

Ebe_Scrooge

As above, it depends on what MCC (Merchant Category Code) is used by the vendor.  If you're buying from a legitimate dealer, it's highly likely that it will come through as a cash transaction.  It's "allowed", but you may well find yourself hit with cash advance fees (and not earning any points, cashback or whatever other perks your card might usually offer).

Interesting point from nyermen - many years ago I worked at a big investment bank, and gold was "just another currency" in our FX system (along with silver, platinum and a couple of others).

Malkytheheed

Yeah I would be buying from a main dealer. Good to know. I'll try Chase, if I get the cashback great, if I don't, so be it. 

dr_adidas01

Malkytheheed said:

Yeah I would be buying from a main dealer. Good to know. I'll try Chase, if I get the cashback great, if I don't, so be it. 

You may want to check the exclusions bit on the  Chase UK website, it specifically says that precious metals and various other types of purchases won’t get cashback. 

Malkytheheed

Ah well. Shame

Dandytf

Malkytheheed said:

Is this "allowed"? Or would it be treated as a cash transaction or somthing similar? 

great idea, I'll side swerve Chase and use another card via Royal Mint.
very nice xmas gifts.

thanks!

Ebe_Scrooge

Dandytf said:

Malkytheheed said:

Is this "allowed"? Or would it be treated as a cash transaction or somthing similar? 

great idea, I'll side swerve Chase and use another card via Royal Mint.
very nice xmas gifts.

thanks!

I'm pretty sure you'll find that most cards would treat such a purchase as a cash advance, with the associated fees and interest.  Anyhow, are you sure you want to be taking out yet another card - surely you've got enough by now?

Dandytf

Ebe_Scrooge said:

Dandytf said:

Malkytheheed said:

Is this "allowed"? Or would it be treated as a cash transaction or somthing similar? 

great idea, I'll side swerve Chase and use another card via Royal Mint.
very nice xmas gifts.

thanks!

I'm pretty sure you'll find that most cards would treat such a purchase as a cash advance, with the associated fees and interest.  Anyhow, are you sure you want to be taking out yet another card - surely you've got enough by now?

another existing card, though don't wish to pay cash advance costs, unless i could maybe use Virgin upto 12 months or Amazon 6 months cash advance offers.

sleepyjones

Maybe a pawn shop type scenario?
Would they have the correct merchant codes?. 
I've probably been watching too many Pawn Stars episodes on Youtube, but obviously a more upmarket pawn broker, I'm not talking cash converters.