Gold has provided the framework for centuries’ worth of currencies, and although gold coins and bars are the norm on the market today, there has emerged an innovative new gold currency within recent years: Goldbacks. These are real gold notes that are designed to be an operational, spendable form of currency. But where did the Goldbacks come from, and how are Goldbacks different from other forms of gold currency? Let’s take a look back through the history and use of this fascinating new currency.

The Concept Behind Goldbacks

They were created to bring gold-backed currency to everyday transactions. As opposed to paper currency that is only valuable because the government stands behind it, Goldbacks are loaded with actual gold within the construction. Each bill is created using precise amounts of 24-karat gold, housed within layers of polymer to create a flexible but solid bill.

The Origins of Goldbacks

The idea of a gold spendable currency is not new—one that has been around throughout history is gold and silver coins that used to be the major medium of exchange before the use of fiat currency. The present Goldback project was started back in 2019 by Goldback Inc., a private company based in Utah. The intention was to create an inflation-resistant voluntary currency that can be used to conduct everyday transactions, particularly within the localized economies that favor the principles of sound money.

The first series of Goldbacks was launched for the Utah state because the Utah Legal Tender Act was already passed by the state back in 2011 that declared gold and silver to be legal tender. This provided the perfect environment to introduce a voluntary private gold currency. With the success experienced in Utah, Goldbacks then expanded to other states like Nevada, New Hampshire, Wyoming, and South Dakota.

How are goldbacks made?

They are created using an advanced vacuum deposition method that constructs gold atom by atom on the surface of a polymer. Each note contains a standard gold quantity that ranges from 1/1000th of an ounce (for the 1 Goldback note) to 1/20th of an ounce (for the 50 Goldback note). This precise method gives each Goldback intrinsic worth tied to the market value of gold.

What makes Goldbacks different?

Goldbacks are exceptional within the gold currency market for a variety of reasons:

Spendability: As opposed to gold coins or gold bars that are usually weighed precisely and valued, Goldbacks are denominated to a specific amount, making them convenient to use for daily transactions.

Portability: Goldbacks are thin, flexible, and lightweight, making them simpler to use and transport than gold coins.

Durability: The layering process with polymers makes the Goldbacks wear-resistant and can be used to circulate without deteriorating.

Private and Voluntary: Unlike government-created fiat currency, Goldbacks are a voluntary medium of exchange employed primarily by individuals and businesses that appreciate the intrinsic value of gold.

Goldbacks currently in circulation

Although Goldbacks are not legal tender within the legal framework, they are becoming increasingly accepted by an ever-growing number of businesses, especially where endorsed. Most see Goldbacks as an inflation hedge and a return to the fundamentals of sound money because they offer an alternative to increasingly devaluing fiat currencies.

With increased popularity, additional states will likely follow suit with Goldbacks, and usage will be extended further. Collectors and investors both are interested in these unique notes both as a store of wealth and medium of exchange.

Closing Thoughts

Goldbacks are a new gold currency concept. Combining the intrinsic value of gold with the convenience of paper money, Goldbacks are a viable replacement for fiat currency. As an investor, collector, or simply an individual seeking to use real money for everyday transactions, Goldbacks are an interesting glimpse into the future of gold-backed commerce. We value the value of gold both in the old bullion shape and other new shapes such as the Goldbacks. Whether to invest gold coins, gold bars, or discover new ways to utilize gold as a medium of exchange, there are the best deals for you. Call us today to learn how to invest gold and secure your future.