American Express® Gold Card
This is one of the best offers from our partner American Express.
The American Express® Gold Card has always been a great card option for frequent travelers and restaurant connoisseurs, but a recent update by Amex adds even more value to this crowd favorite.
With an excellent rewards structure, a decent welcome bonus and an array of luxury perks, this mid-tier card could be a perfect addition to your wallet.
Here are the details
With the American Express® Gold Card, you’ll get 4X Membership Rewards® points at restaurants worldwide, 4X points at U.S. supermarkets (up to $25,000 per year in purchases) and 3X points on flights booked directly with airlines or on amextravel.com. You’ll additionally receive 1X points on all other purchases.
The card comes with a pretty generous 35,000-point welcome bonus when you spend $2,000 on purchases within your first three months. You’ll also have access to excellent perks, including:
- Up to $100 airline fee credit per calendar year for incidentals charged to your Amex account
- Up to $120 in annual savings (up to $10 monthly) when you use your Amex Gold on Boxed , Grubhub, Seamless, The Cheesecake Factory, Ruth’s Chris Steak House and participating Shake Shack locations (enrollment required)
- The Travel Collection by Travel Leaders Group membership
This card doesn’t charge any foreign transaction fees (see rates and fees), so if you frequently travel outside of the United States, you won’t have to worry about fees eating into your earning potential.
Worthy addition to your wallet?
First and foremost, this card is meant for those who travel often and spend quite a bit of money eating out, ordering in and grocery shopping. If you consider yourself a homebody, the American Express Gold Card might not strike your fancy.
There’s a hefty annual fee of $250 (see rates and fees), so it’s important to make sure you can comfortably pay this each year. Analyze your spending habits to determine whether the rewards you’ll earn from the Gold Card will cover the cost of the fee.
This card is great for redemption flexibility, as you can transfer your Membership Rewards® points to 21 travel partners (18 airlines, three hotels). Even better, you’ll usually get the most value from Membership Rewards® points when transferring to a travel partner.
How much are rewards worth?
Let’s take a look at how much your Membership Rewards® points would be worth with a spending example:
|Card||American Express® Gold Card|
|TPG April 2019 point valuation||
2.0 (when redeemed for airfare)
1.0 (when redeemed for all other purchases)
$2,000 * 12 months * 4X * $0.01 = $960
$2,083 * 12 months * 4X * $0.01 = $999.84
$3,000 * 12 months * 3X * $0.02 = $2,160
$1,000 * 12 months * 1X * $0.01 = $120
|Welcome bonus||35,000 Membership Rewards® points when you spend $2,000 in the first three months (worth $350)|
|First-year value||$4,589.84 (including welcome-offer)|
If you spent $2,000 a month at restaurants worldwide, $2,083 a month at U.S. supermarkets (therefore maxing out the yearly category cap), $3,000 a month on airfare and $1,000 a month on all other purchases, you’d earn $4,239.84 worth of Membership Rewards® points. When you include the 35,000-point welcome bonus, that bumps your earnings up to $4,589.84.
Keep in mind the worth of your Membership Rewards® points varies based on what you redeem them for. According to TPG’s point valuations, Membership Rewards® points redeemed for travel are worth 2 cents, whereas they’re normally valued at 1 cent.
Overall, you’ll get the most value out of your points by transferring them to one of AmEx’s travel partners.
Get the most out of the Amex Gold
The Gold Card offers more than a few additional perks, starting with American Express Preferred Seating. With Preferred Seating, you’ll have access to premium seats for select sporting and entertainment events.
With Amex’s Baggage Insurance Plan, American Express will cover any eligible lost, damaged or stolen baggage when you purchase the entire fare for a Common Carrier ticket. You can also enjoy travel perks like Premium Roadside Assistance and car rental loss and damage insurance.
The only bonus category with a cap is the 4X points at U.S. supermarkets (up to $25,000 per year). To make the most of this category, you’ll want to comfortably spend just under $2,100 a month on groceries.
If you fly often with a specific airline it will be easy to select an airline partner for your $100 airline expenses credit. The credit is valid with most major U.S. airlines, and after you use your Gold Card to pay, you’ll receive the statement credit in two to four weeks.
As for the $120 dining credit, you must enroll in your online Amex account in order to start receiving up to $10 per month.
The bottom line
The American Express Gold Card isn’t for the faint of heart. You’ll benefit most from its generous rewards structure and perks if you travel often, eat out regularly and can comfortably spend a large amount of money doing so.
For rates and fees of the American Express® Gold Card, please click here.