Goldbacks as currency

[Bacchus]

Goldback company online

How cool is this? A company is manufacturing currency notes containing real gold, in the denominations of 1, 5, 10, 25, and 50 Goldbacks.

The 1 Goldback note is currently being sold for around $6. It contains 1/1000 ounce of gold, worth about $2.34 with today's price of gold (Kitco).

The website shows where you can buy them and who accepts them as currency. Very limited if you don't live in Utah! The states that currently have businesses that accept them are Utah, Nevada, New Hampshire, South Dakota, and Wyoming. Utah appears to currently be the most active in buying and selling:

Utah Businesses that accept holdbacks

Some big name bullion distributors are listed as selling Goldbacks, including JM Bullion, APMEX, and SD Bullion. JM Bullion sells the 1 Goldback note for $6.35 (if you buy enough), not a good buy for 1/1000 oz (troy!) of gold if you're only buying it for a short term investment. But next week I'll buy some for its 1) novelty value, 2) cool factor), 3) support for an alternate currency, and 4) as a gift for a few lucky family members.

JM Bullion selling Goldbacks

APMEX YouTube video:

Gold is Money: Goldbacks are Bringing Back as currency

Read More

 

[Certaindeaf]

Vanity paper once again proves P. T. Barnum correct.

 

[Bacchus]

Goldback Buying Hack - Cheapest Way to Buy Goldbacks!

This guy has a plan to buy Goldbacks much cheaper and then sell them at a profit.

1. He goes on to a bullion website that sells Greenbacks and then buys a 50 Goldbacks Note, which is sold for much less premium than fifty individual 1 Goldback Notes.

2. He then goes on to a website called Alpine Gold Exchange which is a gold vault and will store your gold, including Goldbacks Notes.

3. He sets up an account with Alpine Gold and mails in his 50 Goldsbacks Note.

4. He then uses the Alpine Gold service to get back fifty 1 Goldbacks Notes, with no premium charged.

5. Now he has fifty 1 Goldbacks Notes that he paid much less than he would have paid buying fifty
1 Goldbacks Notes individually.

6. He goes on eBay and sells the individual 1 Goldbacks Notes individually for much more than he paid per 1 Goldbacks Note by buying a 50 Goldbacks note in the first place.

7. Profit!

The Catch: This video was uploaded more than two years ago. I don't know if Alpine still works like this or if they're even in business.

 

[Knobgoblin]

Quick check on the web shows $50 notes are around $250 ea , while $1 notes are under $4.
The math just isn't there.

 

[Alexx1401]

I saw these things a while back. The only thing I was curious about is how easy is it to just get the gold out of the paper if needed. At the time I did not see an answer to this but it was a while back.

 

[Kcee]

A while ago I did some calculations on using them as a currency in businesses that accept them. Because of the value set by the businesses you can actually save money on big purchases.

Because they are not accepted in my state they're just a novelty.

 

[Certaindeaf]

A while ago I did some calculations on using them as a currency in businesses that accept them. Because of the value set by the businesses you can actually save money on big purchases.

Because they are not accepted in my state they're just a novelty.

Did those businesses specialize in pyramids by any chance?

 

[TTSX]

So they want me to spend $6 for $2.34 worth of gold. Got it, no thanks.

 

[gmerkt]

Just my opinion. Not useful as money and terrible premium.

"Money" needs to have a stable value to be a medium of exchange.

Gold itself is valuable as a hedge against disaster, etc. but since it's become a commodity, it isn't a good form of circulating "money" at present. It will take a sovereign entity to control gold as "money" and be able to maintain and sustain it with a stable value of exchange.

In US history, there were tortuous times when gold and silver values fluctuated simply due to surges of supply from mining that came into the treasury. So even sovereign states can have problems with PM.

 

[Bacchus]

I saw these things a while back. The only thing I was curious about is how easy is it to just get the gold out of the paper if needed. At the time I did not see an answer to this but it was a while back.

I saw, but didn't watch, a YouTube video where the uploader claims to have extracted the gold.

 

[Bacchus]

"Money" needs to have a stable value to be a medium of exchange.

I guess that rules out BitCoin.

 

[CamoDeafie]

Money" needs to have a stable value to be a medium of exchange.

And there need to be a somewhat reliable way to determine values. These days I think (could be wrong) , the Dollar is linked to oil/petroleum production/reserves?

I guess that rules out BitCoin.

Dollar may be ruled out too. An ounce of gold is equal to × amount of whatever currency worldwide, which is why even as a commodity, gold still can be worth having.

 

[Stomper]

Did those businesses specialize in pyramids by any chance?

 

[gmerkt]

And there need to be a somewhat reliable way to determine values. These days I think (could be wrong) , the Dollar is linked to oil/petroleum production/reserves?

I don't think this is so. Because oil is a traded commodity and the price fluctuates, in USD, every day. For decades, the oil market had been quoted in USD, but not at fixed rates. Several countries want to move away from this.

Dollar may be ruled out too. An ounce of gold is equal to × amount of whatever currency worldwide, which is why even as a commodity, gold still can be worth having.

Completely agree. It will always have value. Which will fluctuate in currency exchange or goods received. But we are a long way from when the US Gov't determined a fixed value for the metal.

 

[dangerranger60]

I have used acid to remove gold from electronics. I would imagine that I could remove the gold from paper the same way.
What I don't get is why someone would buy $2.5 of gold for $6. DR

 

[Idaho44]

A new form of "salting"?

 

[Bacchus]

What I don't get is why someone would buy $2.5 of gold for $6. DR

Stop thinking of it as an investment, and start thinking of it as a currency.

Let's say its 2025, and you are in a swap meet or a flea market or just with some like-minded Americans meeting up in a parking lot. Somebody wants to sell $15 magazines, but they don't want to be tracked with CBDC. You can buy with your Goldbacks. If you're in a situation with family or friends you can buy and sell goods and services back and forth, without needing to be constantly buying more Goldbacks.

When you're ready to cash out because you need to purchase something that can't be bought (if you don't live in Utah, for example) with Goldbacks, you can sell your Goldbacks to someone who will gladly pay you in CBDC to get your Goldbacks.

It's a little like Venmo, at least at the start, where you have your own little economy between family and neighbors.

The $6 price is from the referenced bullion dealer, for a 1 Goldbacks Note paid by credit card. My second post has a link showing an alternate approach where you buy a 50 Goldbacks Note for a much cheaper price than for fifty of the 1 Goldbacks Note. For example:

50 Goldback Note at SD Bullion, quantity 10, paid by check

If you pay with a check this costs you $230.43. So, $230.43 / 50 = $4.61. Better, but this price is when buying ten 50 Goldbacks notes, so a total of $2304.30. The only way I could see buying this much is if I had a market of individuals who would then buy some of them from me.

I'm not suggesting anybody buy these. I'm just making you aware of the option.

Choice is good! Enjoy it before it gets taken away.

 

[Nosferatu]

how easy is it to just get the gold out of the paper if needed.

Light it on fire.

 

[Bacchus]

Light it on fire.

Here's a video of someone who did exactly that.

GOLDBACKS ... Can YOU Recover Gold From Them?

He's definitely on the Novelty Only side of the fence!

 

[dangerranger60]

If I dug up my driveway and processed the dirt I would get $3 to $4 of gold from every ton of dirt processed. It would not pay for my expenses. I live at the southern end of CA's Motherlode area. It takes $30 to $40 a ton to make money.
The only one I see making money off this is the guy selling the Goldbacks.

If you want to use gold as money deliver a coin in small denominations $5, $10, $20, etc... DR