Euro Pacific Bank introduces silver-backed debit cardon November 12, 2012 at 18:01
Euro Pacific Bank, the brainchild of Peter Schiff, has introduced the world’s first truly silver-backed debit card to complement their new silver-backed bank accounts.
Euro Pacific Bank’s silver-backed debit card gives the bank’s customers access to their silver holdings in a convenient way in more than 210 countries worldwide (excluding American citizens or anyone who resides in the United States). The associated silver-backed bank accounts “…operates under a strict government guarantee, making it one of the safest custodians in the world and uniquely qualified to preserve your hard-earned wealth” (Euro Pacific Bank Website) and makes it possible to: Buy and sell silver 24/7 from the comfort of one’s home, spend silver with a silver-backed debit card at vendors and ATMs worldwide, track transactions via the Internet and privately store physical silver offshore. Each of the mentioned silver-backed debit cards get linked to a Euro Pacific Bank Account during the application process (optional). The bank customer than have to activate his/her Euro Pacific Bank Account by making a minimum deposit of either $5,000 (no opening fee) or $500 ($50 opening fee); the process can take up to two weeks to be finalised. Furthermore, subsequent minimum deposits of $1,000 may be made at any time via wire transfer and silver-backed debit cards can only be funded with cash (no credit available). The silver will be stored in a private account held at the Perth Mint in Australia and there are two purchase options to buy silver: “1. Instant Fill — 4% to buy / 4% to sell — (No minimum)” or “2. Delayed (Offline) Fill — ($5000 minimum)”. Offline order amounts and the associating fees expressed as percentages (within brackets) are as follow: $5,000-$19,999,000 (3.00%), $20,000-$49,999 (2.50%), $50,000-$99,999 (2.25%) and $100,000+ (2.00%). In addition, a 0.95% annual silver storage fee will be deducted from all Euro Pacific Bank Accounts on a quarterly basis. The silver-backed debit card itself costs a once-off $150 which covers the cost of the card and delivery. It is however entirely optional to purchase a card, because a silver-backed Euro Pacific Bank Account may be opened without purchasing and linking a card. A card however gives quicker and more secure access to one’s funds.
Silver Bullion welcomes the introduction of the above-mentioned silver-backed debit card and bank accounts by Euro Pacific Bank, but we do not recommend that anyone that wishes to hold or own physical silver use these financial instruments as a means of securing physical silver ownership (which are among the best ways to save money). The mentioned instruments present promises of physical silver at best and are like all paper instruments wide open to abuse. This is despite the fact that the silver-backed bank accounts operate “under a strict government guarantee”; any guarantee is after all only as strong as the entity that provides the guarantee. One should therefore purely see the Euro Pacific Bank’s silver-backed debit card and the relating silver-backed bank accounts as an alternative to purely fiat-backed debit cards and bank accounts. In addition, by going for these instruments, one widely exposes oneself to paper-manipulated silver prices, but if one takes personal possession of the physical silver one purchases, there are nothing they can do to destroy the intrinsic value of the physical silver held (at least not via paper). They can however easily destroy the value of paper instruments via paper. This is not even to mention all the transactional and storage fees that are associated with paper instruments (or paper silver for that matter); all fees that eat away the value of the paper instruments held. Thus, only apply for a silver-backed debit card and Euro Pacific Bank account if you’re seeking a silver standard, which like all silver standards or paper silver, presents a promise of physical silver at best. It must not be seen as a guarantee of physical silver (despite the best of propaganda to the contrary).