GoldBack FAQ's

Frequently Asked Questions

To promote the use of inflation proof currency to protect the spending power of families and individuals at any income level. 

For the first time individuals can spend physical gold on small items like a smoothie, or large purchases like a home remodel.

The Goldback solves the 2,600 year “small coin problem” by allowing physical gold to be used for any size transaction. One Goldback contains 1/1,000th of an oz of 24 karat gold. Our Fifty Goldback contains 50 times that, 1/20th of an oz.

1. What is a goldback?

The Goldback may be the world's only circulating interchangeable physical gold money. Goldbacks are created in various series to circulate under the applicable laws, and in the jurisdictions of Utah, Nevada, Wyoming and New Hampshire. Unlike most gold products, the Goldback is designed to be used as a currency with interchangeable denominations rather than varying premiums based on gold content. This means that the fifty denomination (1/20th of an oz) can be traded in for fifty of the one denomination (1/1,000th of an oz).

One thousand Goldbacks of any combination equal an ounce of gold. They may be bartered with like other forms of non-current money gold anywhere in the world, due to the fact that they carry intrinsic value. They are easier to spend than other forms of gold because they can be used in small transactions and they don't carry varying premiums.

It is helpful to think of the Goldback as an experimental sound money project within the States that authorize it's use as such.

2. Do I lose that when I spend it?

There is a premium over spot on the goldback. No, the Goldback is worth about the current average rate published on the site. If you buy a Goldback at the average price (say $4.00) then you can spend it at the same rate on the same day. You should do your research and avoid paying more than the average exchange rate for your Goldbacks. Goldback Inc. cannot control how high independent retailers price Goldbacks as we are a wholesaler. If you find someone selling Goldbacks for too high then consider not buying from them.
The Goldback intrinsically is worth more than spot (which is a price based on an ounce, not 1/1,000th of an ounce). The same thing is true for jewelry or any other heavily worked material. Goldbacks are priced significantly cheaper than other gold products with the same weight (about 25% less) making them a great deal.

3. Why should I use Goldbacks to buy things?

Each time you buy something it is like casting a vote for what you want to have in the world. If sound money is important to you, then spending Goldbacks supports sound money. If credit cards are important to you then using those supports that type of money. If you want to see more organic food then buy that. This is the beauty of capitalism. Be the change you want to see in the world. Goldbacks are a game changer for precious metals. There has never been a 1/1,000th of an ounce gold product that was as inexpensive as the Goldback. This makes it cheap to turn anyone into a first-time precious metals owner whether that is your nephew or your waiter. You will want more Goldbacks in your stack if your primary goals are:

  1. To have an extremely fungible form of fractional gold that can be used in the event of a crisis.
  2. To have a form of precious metal that has never been counterfeited.
  3. To spread awareness of sound money to your friends, family, and community.
  4. To accumulate gold on a tight budget.
  5. Goldbacks may be especially desirable as a currency in States where it is authorized as such.

There are two other important things to consider if stacking Goldbacks.

  1. Goldbacks have appreciated in price from $2.00 in 2019, to an average of $3.75 at the end of 2021. This is an 87.5% appreciation during a time when gold coins and bars went up by about 60%. No one has ever lost money stacking Goldbacks (so long as they weren’t overpaying.) We believe that Goldbacks will continue to appreciate in value at least as quickly as other forms of gold. Possibly far more so if we can’t keep up with demand.
  2. We haven’t always recommended stacking Goldbacks en masse because there are some supply constraints. The supply issues have improved dramatically since the end of 2021. If Goldbacks become more ‘discovered’ then premiums could shoot up again for a time before we catch up with production. Our goal is to keep premiums between 80% and 100% by producing enough to meet demand. If Goldbacks cost more than that then you are probably overpaying because we are failing to meet market demand. Anyone buying at a 300% premium could see the price pushed back down to 100% again and they could lose value.

Like every other form of money, the value of a Goldback is driven by supply and demand.