FLORIDA, USA (Commodity Online):A new breed of credit cards backed by Gold bullion is soon to become a reality in USA. Sweeping changes in credit card industry is set benefit not only consumers, but gold bugs too, who'll be able for first time to charge purchases against 'liquid gold.'

In particular, Public Law 111-24, the Credit Card Accountability Responsibility and Disclosure Act of 2009 whose major provisions are effective February 2010, provides new legislation pertaining to credit cards which will make them not only easier to understand, but offer a "golden opportunity" for those who want to have a new credit card backed by gold, rather than dollars.

"Those who 'believe in gold' can see the new law reshaping attitudes and conventions about credit cards that will help make this breakthrough collateralized credit card concept a reality in the very near future. "They know that gold, which is a hard asset, can provide a higher level of liquidity and usefulness, while positively impacting the financial picture for millions of Americans," said Jeff Silver, VP of Gold Solutions Marketing, Inc. (www.TheGoldBullionCard.com)

This could help turn millions of Americans into gold bugs – and Gold Bullion Cardholders, based on the bullion coins they currently hold, or the coins they want to purchase for the first time…all while having a new gold-backed credit card as well.

"The new law contains the most far-reaching changes to the credit card industry in decades, and change begets change, with conventional and outmoded thinking giving way to new ideas and new opportunities," said Silver.

With the new regulations, credit cards will be more transparent and easier to understand. However, traditional cards will be more costly for users, and inaccessible for low-income families, say issuers and industry analysts, who warn consumers to expect the return of routine or higher annual fees, additional changes in requirements and restrictions, and fewer valuable rewards programs for cardholders.

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"A credit card based on 75 percent of the value of Gold coins on deposit will be backed by solid and tangible collateral, which should give the issuing bank a much more secure feeling about extending credit," Silver added.

Gold Bullion Cardholders will have their coins deposited in a highly secure and fully insured vault, and will continue to receive the benefit of any rising value of gold, while their gold serves as collateral for the card.

"The Gold Bullion Card is the ultimate win/win/win situation for the consumer, the bank and the economy. The consumer finds a new source of credit from assets he may already have, the bank issues credit cards to individuals without the bank incurring any risk of default, and into the economy pours a new source of credit and liquidity."

Gold Solutions Marketing Inc. plans to introduce the first credit card backed by gold bullion coins from all countries. The card will be issued in association with Delaware Depository Service Company, CardWorks, The TransMedia Group, and issuing banks to be selected. Delaware Depository Service (www.DelawareDepository.com) is an exchange licensed and CFTC approved, fully -secured precious metal vault, where bullion and coin deposits are insured by Lloyds of London. CardWorks Inc. is a major credit card service organization responsible for customer service, including registration, customer contact and servicing for the portfolio. The issuing banks and launch dates will be announced once the selection is completed. The promotion of the card is being managed by the TransMedia Group) (Courtesy: PRNewswire)

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