What is a Goldback?
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A Goldback is an innovative new form of money. It’s the world’s first voluntary currency that is created from a small amount of spendable 24-karat gold. They are an inflation proof form of money, and allow people to use gold for any kind of transaction no matter how small or large.
The designs on beautiful 24K gold foil notes that are intricate and visually appealing, representing various US states like Utah, Nevada, and New Hampshire. Goldback notes are held in a plastic film to hold the gold molecules in place and ensure durability for every Goldback.
They are designed and manufactured with the intention that people need to be able to carry, spend, touch and admire them without damaging the notes. They need to be at least as durable as typical paper money currencies.
Goldbacks are made from small amounts of gold contained in each note, and come in denominations of:
- One: One Goldback note has 1/1000th troy oz. of gold in it.
- Five: A five Goldback note contains 1/200th troy oz of gold.
- Ten: This number has a 1/100th troy oz of gold.
- Twenty-Five: The 25 Goldback holds 1/40th troy oz of gold.
- Fifty: The 50 Goldback contains 1/20th troy oz of gold.
If you look at those numbers, you will see different fractions, but you should also notice the pattern of 1/1000th. One Goldback is 1/1000th of a troy ounce of gold, a Five Goldback is 5/1000th or 1/200th of a troy ounce and a Fifty Goldback note is 50/1000th of a troy ounce, which is 1/20 of a troy ounce as printed on the notes. Each of the notes denominations represents how many 1000ths of a troy ounce of pure gold that each note contains. This is called a divisible currency, and it is just like how regular dollars work in cumulative fashion from one to five to ten divisions of dollars, and so on.
The Utah Legal Tender Act 2011 allowed the creation of Goldbacks, and they can be accepted in businesses all over Nevada, Utah, New Hampshire, and Michigan.
You can get several Goldback designs. The drawings are different depending on which state collection you get. There are currently original designs for New Hampshire, Utah, and Nevada Goldbacks. You can collect them all if you choose!
How Do You Use Them?
There are plenty of businesses that accept Goldback. You can spend them, barter with them, trade to complete a collection, and sell them. Since they are gold, some people even use them as a way to purchase gold in small fractions of an ounce for gifts, savings or as a potential hedge against the inflation of ordinary national fiat currencies.
If you’re planning to use Goldbacks in a transaction, you can call the business ahead of time to see if they accept it. You’ll be more likely to find luck with smaller businesses, as opposed to big brand names like Walmart or Target. In Utah, there’s even already even a list of featured businesses to help you.
Acceptance and awareness are spreading, and with more states coming online, opportunities to do business or trade in Goldbacks as the currency of choice are increasing every day. And of course, they are gold, so they always will have value for just the precious metal, even if you are not near a business that accepts them for transactions.
Where Do You Get Goldbacks?
You can buy them right here on HistoricMetals in our online shop, and we sell them on eBay too. Have a browse through our store and see if we have what you’re looking for. We have a range of Goldbacks in stock, and get new ones all the time so you can come back and find if we have the specific design, state or denomination that you need for your collection.
Are Goldbacks Legal?
They are completely legal in certain states and can serve as currency or for bartering. The Goldbacks can be used in Utah, New Hampshire, Michigan, and Nevada. It’s a special form of currency that can be used when shopping, authorized by state law in these locales.
If you’re not in one of the states listed above, then you cannot use Goldbacks as a legal currency. But you can still use them for bartering and as a collector’s item.
How Are Goldbacks Made?
The creation of the Goldback relies on 5th generation vacuum deposition technology. The designs are printed on a sheet of polymer that is then bombarded with the correct amount of atomized gold particles in a vacuum chamber. This gold is then sealed inside by a second protective barrier of polymer, thus creating a beautiful negative image.
The company that invented the process, Valaurum has been developing the process for nearly two decades and it has never been counterfeited. It is truly the most technologically advanced process for creating a physical gold money in the world today.
Could I Make Money Investing In Goldbacks?
Goldbacks to appreciate in value over time depending on supply and demand, and since they are made of pure gold they also fluctuate along with the price of gold as determined by gold market spot prices.
In 2019, a Goldback was worth $2, but at the time this article was written in 2022, they were worth around $3.92, according to the average exchange rate. So, it is possible for you to make money by having a collection of Goldbacks if the gold market prices continue to climb. Some people also buy and sell them similar to how bars and rounds and coin bullion are bought and sold.
It’s completely up to you how you use them, spend them or save them. As with anything, this is not financial advice and we are not financial advisors, but we do believe in our opinion, that Goldbacks are generally as valuable as any other form of gold. After all, gold has been valuable since mankind first discovered and began using it, and we don’t expect that to change any time soon.