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Discover the Goldback: The Revolutionary Alternative to the Dollar

What Are Goldbacks? The New Currency for the Liberty-Minded Investor

Global commerce is dominated by fiat currencies, and with out-of-control central banks, the quest for a tangible and trustworthy alternative has never been more pressing. Enter the goldback – a revolutionary currency that combines the age-old reliability of gold with modern ingenuity. So, what exactly are they?

Goldbacks are a novel local currency currently in circulation in four states across the U.S., with its roots tracing back to its 2019 introduction in Utah by Goldback, Inc. These aren’t your typical paper notes. Instead, goldbacks incorporate a delicate layer of actual gold, shielded within a durable polymer layer.

Utah goldbacks in units of 1, 5, 10, 25, and 50.
Utah goldbacks contain actual gold

These notes, while resembling standard currency in shape, boast a composition of 24K pure gold, safely ensconced between transparent polyester layers. This not only lends an aesthetic touch but also denotes the fractional gold bullion intrinsic to each note. A single goldback represents 1/1000th of an ounce of pure gold, and they’re available in varied denominations, from 1 to 50, each holding a corresponding amount of gold, e.g. a fifty-goldback note contains 50/1000 or 1/20th of an ounce of gold.

These unique notes are the handiwork of Valaurum, a renowned private mint that crafts gold items for governments worldwide. Valaurum’s specialized technique involves a patented process that seamlessly integrates gold into slender sheets, all encased within a protective plastic layer.

The goldback’s journey has been nothing short of impressive, with its monthly sales skyrocketing to over a million USD and a circulation exceeding US$20 million in value. While its primary function is as a local currency in select regions, its global appeal stems from its intrinsic gold content and its allure to collectors, preppers, and others alike.

Are Goldbacks a Good Investment? The Financial Power Move You Didn’t Know About

The financial landscape is ever-evolving, and savvy investors are always on the lookout for the next big thing. With the dollar’s value fluctuating and trust in centralized banking systems waning, goldbacks emerge as a promising investment avenue. Here’s why.

1. Stability Through Physical Gold: Unlike fiat currencies, which are not backed by any physical commodity, goldbacks contain a tangible amount of 24K pure gold within each note. Although nothing has intrinsic value, gold’s centuries-long history as a subjectively valuable asset offers a level of stability. and a store of value. The presence of gold in each note means that you’re not holding just a representation of value but you’re holding actual value within it.

2. Protection Against Inflation: One of the significant concerns with fiat currencies like the USD is inflation, especially when governments print more money. Goldbacks, with their gold content, offer a hedge against inflation. Since there’s a limited amount of gold in the world, its value remains more consistent compared to fiat currencies, which can be printed in unlimited quantities. Such printing inflates the money supply, causing rising prices and a devaluation of currency overall.

3. Flexibility in Gold Transactions: Traditionally, using gold for everyday transactions was challenging due to its high price. If you wanted to spend $100 in gold, you’d need a prohibitively small amount of physical gold, given that one ounce of the precious metal is between $1,800 and $2,000. Goldbacks solve this problem by allowing individuals to spend small, interchangeable increments of gold, making it feasible to use gold for everyday purchases.

4. Growing Acceptance: Initially introduced in Utah, goldbacks have expanded to other states like Nevada, New Hampshire, and Wyoming. As their popularity grows, it’s anticipated that more states will recognize and accept goldbacks, increasing their utility and demand.

5. Ease of Entry: Unlike other gold investment vehicles like IRAs or direct purchases from companies that require hundreds or thousands of dollars to get started, a single goldback costs a little over $4 as of this writing. This makes buying and holding goldbacks available for everyone.

6. Historical Reliability of Gold: Gold has been a trusted form of currency for thousands of years, from ancient civilizations to modern times. Goldbacks tap into this historical reliability, offering a modern twist to a time-tested asset.

7. Potential for Appreciation: Since their introduction in 2019, the value of goldbacks has seen growth. For instance, the price of goldbacks in 2019 was $2.00, and by 2021, it had risen to $3.75, marking an 87.5% appreciation over two years.

8. Independence from Governmental Control: Many individuals are wary of placing complete trust in government-controlled fiat currencies. Goldbacks, being a product of a private company, offer an alternative that’s independent of governmental monetary policies.

9. Earn Interest on Holdings: Alpine Gold, one of the premier goldback dealers in Utah, offers up to 3.5% interest to those who choose to “lease” their goldbacks to the company. In this topsy-turvy economy, holding gold this way can further mitigate the downturns a portfolio may experience with other assets like stocks and real estate.

So, while goldbacks present numerous advantages, like all investments, they come with risks. Their future valuation and acceptance are still somewhat uncertain (but growing in popularity), and potential governmental regulations could impact their growth. However, for those looking for a tangible, stable, and potentially appreciating asset, goldbacks are worth your consideration.

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The Golden Composition: What Are Goldbacks Made Of?

At the heart of the goldback’s allure is its composition. Unlike paper money, which holds value based on trust, goldbacks are in demand because of their actual content. Dive deep into the materials and craftsmanship that make this currency a tangible asset.

What Is a Goldback?

From East to West: What States Have Embraced the Goldback?

The goldback isn’t just a niche currency for a select few. Several states have recognized its potential and are paving the way for its widespread use. As of this writing, Utah, Nevada, Wyoming, New Hampshire, and South Dakota have all issued their own versions.

Universal Acceptance: Where Are Goldbacks Accepted and Why Businesses Love Them

The true power of a currency lies in its acceptance. From local merchants to online platforms, you can find out where you can use goldbacks and why businesses are eager to jump on board. Use the directory provided here to find a list of businesses that accept goldbacks in the five states that have issued them.

Joining the Gold Rush: How Can I Buy Goldbacks?

Ready to diversify your assets and step into the world of goldbacks? It’s easier than you think. A site we use ourselves is DefytheGrid.com. They make the purchasing process super simple. Additionally, we’ve created a step-by-step guide to acquiring this golden currency if you’d like more information.

Every Coin Has Two Sides: What Are the Disadvantages of Goldbacks?

While goldbacks offer numerous advantages, it’s essential to be aware of potential drawbacks. From liquidity concerns to market acceptance, here are some of the challenges you might face holding or spending goldbacks.

1. Price Above Spot Value: One of the main drawbacks of goldbacks is their premium pricing. The cost of a goldback is significantly higher than the spot price of the gold it contains. This premium is due to the manufacturing process and the novelty of the product, making it more expensive than traditional gold investments like bullion or coins.

2. Limited Spending Options: Although goldbacks are accepted in certain states and by some businesses, their acceptance is not widespread. This limited acceptance can pose a challenge for those looking to use goldbacks for everyday transactions. The currency’s utility is primarily confined to specific regions and establishments, which may limit its practicality for some users.

3. Market Uncertainty: As a relatively new form of currency, goldbacks face uncertainty in terms of their long-term value and acceptance. The market for goldbacks is still developing, and it’s unclear how widely they will be adopted in the future. This uncertainty can be a risk for investors looking for a stable and widely accepted form of currency.

4. Regulatory Risks: Since goldbacks are not issued by a government entity, they could face regulatory challenges or changes in legal status. Changes in regulations or legal interpretations could affect the use and value of goldbacks, posing a risk to investors.

5. Liquidity Concerns: Converting goldbacks into cash or other forms of currency may not be as straightforward as with more traditional investments. The process might require finding a willing buyer or going through specific dealers, which could affect the liquidity of the investment.

6. Storage and Security: Like any physical asset, goldbacks need to be securely stored to prevent theft or damage. This requirement can pose an additional burden for investors, especially those holding a significant amount of goldbacks. However, companies like Alpine Gold will vault them for you free of charge and even pay interest to you in goldbacks above a certain threshold.

7. Novelty Factor: Some view goldbacks more as a novelty item than a serious investment or currency. This perception could limit their acceptance and growth as a mainstream financial asset.

So, while goldbacks present an innovative approach to currency and investment, potential buyers should carefully consider these drawbacks alongside the benefits. The decision to invest in goldbacks should be based on a thorough understanding of both their potential and limitations.

Measuring Worth: What Are Goldbacks Worth in Today’s Market?

Value is a dynamic, subjective concept, especially in the world of currencies. This calculator can help you understand how much a goldback is worth on the open market. The actual price may vary somewhat depending on the dealer. For more information, about the rationale for the currency’s price, check out this article on Goldback.com’s website.

Craftsmanship and Innovation: How Are Goldbacks Made?

The creation of goldbacks is a blend of age-old goldsmithing techniques and cutting-edge technology. Watch the video below to better understand the meticulous process behind each goldback’s creation.

How Goldbacks Are Made

Are Goldbacks Safe? Are they Worth it?

The manufacturer of these one-of-a-kind bills ensures that they’re safe to use and resistant to counterfeiting. Their explanation, found here, goes into detail about how the gold content is deposited onto the bill as well as general information about how the bills are created to foil potential counterfeiters.

Buyers can easily choose the amount of risk or exposure to goldbacks by purchasing just a few at a time. The resale market is vibrant, and demand is strong, so divesting them if they don’t suit your investment strategy or goals is fairly easy.

Conclusion

The goldback is more than just a currency; it’s a statement of freedom, autonomy, and trust in tangible assets. As the world grapples with economic uncertainties, the goldback stands out as a beacon of stability. Whether you’re a conservative, libertarian, or simply someone looking for a reliable currency alternative, the goldback deserves your attention. Ready to make the switch? Visit DefytheGrid.com to get started on your goldback journey!

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