Posted: Feb 20, 2019 12:57 am
by jamest
My interest in gold has persisted and I've just now discovered something which might be potentially interesting to some of you: a mastercard which uses GOLD as its primary medium of exchange. I.e., you register, receive your mastercard, deposit your fiat which is then converted to gold at its present value (which is stored somewhere in Switzerland). When you eventually use the card, you don't actually pay the fiat charge but the amount of gold that this translates to at that moment in time. So, for example, the price of gold is currently close to £1000 per ounce so if your bill at [say] the restaurant is £100, your actual bill on the card will be 0.1 ounces of gold. That amount of gold will be deducted from your account.

The great advantage of such a card is that it protects you from currency inflation. For example, let's imagine that the shit has hit the fan and your fiat is now in meltdown. So, you go to that restaurant again but this time the bill is [say] £200 for the same meal which you had 3 months ago (the meal costs you twice as much). Meanwhile, gold is a hedge against such calamities so let's assume for the sake of simplicity that its price has doubled within that timeframe. You're now presented with a bill for £200 but now the price of gold is £2000 per ounce, so in effect you'd only be paying the same 0.1 ounces of gold that you did the previous time you used this card to pay for the meal. I.e, the price of the meal has not increased if you use this card.

There are of course some small fees associated with the card/account. However, on face value It's a very interesting concept to me and I'm going to sleep on it as it's quite late now. However, I would be interested to hear any comments here from intelligent members before diving in. The particular company/card I'm discussing is linked below. Cheers.