It has become almost automatic to open a bank account in order to receive and send money these days. This practice, deeply rooted in our habits, is however not without risks, since it exposes our money and sometimes all the savings of a lifetime to tax fraud, money laundering or market manipulation.
These are all factors that can reduce 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 and in particular 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 currency 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 amount 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 a bankless account 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.
So you do not go through a bank that will make your money work in order to derive benefits. Gold and silver are your exclusive property, making your funds untouchable no matter the current economic situation. It also gives you peace of mind, knowing that your money will not be used for questionable actions like money laundering or funding 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 the precious metal backed account. It is possible to find providers who offer the free payment card and who do not require no fees for opening the account or for keeping it. Generally, no minimum monthly payment will be required. The only costs incurred are those required for the transformation of 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.