It has become almost automatic to open a bank account to be able to receive and send money these days. This practice, deeply rooted in our habits, is not without risks, since it exposes our money and sometimes all the savings of a lifetime to tax fraud, money laundering or even market manipulation.
These are all factors that can weaken our confidence in traditional banking establishments. Fortunately, opening an account in these establishments is not inevitable. Many alternative solutions are now available to the general public, including the opening of an account backed by precious metals.
How does the Precious Metal Backed Account work?
The precious metals back-to-back account is a bankless account whose currency used is backed by gold and silver, and sometimes even diamonds, in order to benefit from greater security for its funds. The system consists in practice of buying precious metals which are in safes and then transforming them into money which can then be used to carry out transactions. In this context, costs will have to be incurred for the transformation of silver into precious metals. They can be between 3% and 10% of the sum to be transformed depending on the nature of the metal chosen.
The use of gold and silver is justified by the fact that these metals are stable and reassuring refuge active ingredients.
The advantages of an account backed by precious metals
To open an account without a bank backed by precious metals, it is necessary to seek the services of a fintech which is responsible for transforming physical assets into a digital currency.
You therefore do not go through a bank that will work your money in order to make a profit. Gold and silver are your exclusive property, making your funds untouchable, no matter the current economic situation. It also helps keep a peace of mind, since you know that your money will not be used for questionable actions such as money laundering or the financing of activities that go against your values.
The transparency of precious metals can be verified since these services must undergo frequent independent audits.
In addition, this system makes it possible to take advantage of some practical advantages inherent in banks, and in particular that of have a card with which it is possible to make transfers, payments...
Pricing can also be one of the advantages of a precious metal account. It is possible to find providers who offer the free payment card and who do not require no fees for opening or maintaining the account. Generally, no minimum monthly payment will be required. The only costs incurred are those required to transform silver into precious metals.
Finally, other products and services may be accessible to users of this system, such as the mobile application for account management and payment card for example.