Goldbacks: A Revolutionary Gold Money Transforming Personal Investing

Money has been a crucial part of human civilization for thousands of years. From shells and beads to coins and banknotes, its form has evolved throughout history. However, one material has remained a constant store of value: gold. In recent years, a new form of gold currency has emerged, offering a unique alternative to conventional currency – the Goldback. In this article, we’ll explore the benefits of Goldbacks, their potential to replace traditional currency, and how they’re a smart investment choice for beginners and professional investors alike.

A (really) Brief History of Gold as Money and the Gold Standard

Gold has been used as a medium of exchange and a store of value since ancient times. Civilizations such as the Egyptians, Greeks, and Romans minted gold coins as a form of currency, and its usage continued throughout the Middle Ages and beyond.

In the 19th and early 20th centuries, many countries adopted the Gold Standard, a monetary system where a country’s currency was directly linked to a specific amount of gold. This system allowed for easy conversion between currencies and facilitated international trade. However, the Gold Standard ultimately failed in 1971 due to reckless government spending and their insatiable need to print money.

Find out what money is exactly by reading our primer: A Beginners Guide: Is it Money or is it Currency?

Introducing Goldbacks: A Solution to Currency Devaluation

Goldbacks are a revolutionary form of gold currency designed to address the problems of traditional currency, such as inflation and devaluation. They are physical bills made from a thin layer of 24-karat gold, deposited onto a durable polymer. Each Goldback bill contains a specific amount of gold, making them a stable and tangible store of value.

This means, you can use actual gold the way you already use cash! That comes with financial anonymity, privacy, and the knowledge of transacting with something of value.

Benefits of Goldbacks

Hedge against inflation: Goldbacks offer protection from the ever-present risk of inflation, as their value is tied directly to gold, which has historically maintained its value over time.
Durable and portable: The innovative production process used to create Goldbacks ensures that they are both durable and lightweight, making them ideal for everyday use and transportation.
Easy to understand: Goldbacks are denominated in specific amounts of gold, making their value easy to comprehend for people of all financial backgrounds.
Legal tender: Goldbacks are recognized as legal tender in several U.S. states, allowing them to be used for everyday transactions alongside conventional currency.
Privacy: Goldbacks offer a level of privacy in transactions that digital currencies and credit cards cannot provide, as they can be exchanged directly between individuals without the need for intermediaries.

Beyond investing, you can spend them too! In many states, Goldbacks are already being used as legal tender.

The Goldback: A Potential Currency Replacement

As trust in traditional currencies wanes and concerns about inflation and economic instability grow, Goldbacks offer a viable alternative. They combine the best features of gold and paper currency, making them suitable for everyday transactions and a reliable store of value.

Additionally, several states have made them legal tender allowing you to make purchases with Goldbacks! Those states are Utah, Nevada, New Hampshire, and Wyoming (that doesn’t mean you can’t buy them from anywhere in the country as a welcome addition to your portfolio).

Investing in Goldbacks: A Smart Choice for All Investors

Goldbacks are an excellent investment option for both beginners and experienced investors looking to diversify their portfolios. They offer exposure to the precious metals market, while also providing the benefits of currency-like liquidity and easy storage.

Beginner investors can use Goldbacks as an accessible entry point into precious metals investing, as they are available in small denominations and require no specialized knowledge to acquire or manage.

Experienced investors can take advantage of Goldbacks’ unique features, such as their legal tender status and potential for widespread adoption, to complement their existing investment strategies.

Drawbacks

One important drawback to consider, however, is the current premium on Goldbacks is due to their novelty and the fact that they are produced exclusively by one company. These higher premiums may be a barrier for some investors or users. However, as the market for Goldbacks expands and more companies potentially enter the production space, it is likely that these premiums will decrease, making Goldbacks an even more attractive option for those looking to invest in precious metals or use them as a stable form of currency.

Silverbacks… ?

Silverbacks are in limited quantities and were made as a proof of concept. There are others being developed but they’re not as popular, yet, as Goldbacks.

Will Silverbacks take off as Goldbacks have? Only time will tell. In the meantime, these are closer to being collectibles rather than an inflation hedge.

The only drawback we can see is the premium- considering the amount of silver these contain is 1/1000th of an ounce. That means, at current market prices of silver, it’s just a few cents worth of silver. That said, if you’re a collector, these would make a very nice addition to any collection given that these are the only ones in the world… so far.

Wrapping Up

Goldbacks represent a groundbreaking fusion of gold’s timeless value and the convenience of modern currency. As an innovative form of money that addresses the shortcomings of traditional currency, Goldbacks have the potential to transform the financial landscape. Investors at all levels should consider adding Goldbacks to their portfolios, as they offer numerous benefits, including protection from inflation, portability, and the opportunity to capitalize on the potential growth of this revolutionary asset.

Despite the current premiums on Goldbacks, their unique benefits and potential for widespread adoption make them a promising and valuable addition to any investment portfolio or financial strategy.

Oh! And check out this fun video from Valaurum, the company that manufactures Goldbacks: