5 Reasons to Own Goldbacks

Goldbacks are likely the most unique gold product we sell on the Hero Bullion website. Some gold investors might be used to seeing gold in a bar or coin. Surprisingly, you can also buy gold notes. Resembling actual bank notes and containing real .9999 fine gold bullion, Goldbacks have become an extremely popular way for collectors to invest in gold. These products are also used as actual currency in some U.S. states, making them perfect for stackers who yearn for a return to the long-gone American gold standard. 

There are hundreds of different ways to invest in gold and silver. Why should investors consider putting their money on this unique category of product? In this guide, we’re walking you through 5 reasons to own Goldbacks. By the end of our blog, we hope you’ll understand precisely why these strange gold bank notes are becoming the proverbial gold standard for gold stackers. 

What are Goldbacks? 

Goldbacks are a voluntary currency containing actual gold bullion. While Goldbacks are not considered legal tender, they’re one of the world’s latest attempts at a gold-backed paper currency. thin notes that contain actual gold bullion beneath a plastic cover. Higher denominations contain a larger quantity of physical gold, but all Goldbacks feature at least some .9999 fine gold bullion. 

Are Goldbacks Legal Tender? 

Goldbacks are technically not legal tender – at least according to the Federal United States government. Can Goldbacks be used to purchase goods and services? Sometimes! Some news agencies have reported that many local businesses in Utah, Nevada, and New Hampshire have started accepting Goldbacks in exchange for their products. 

Widespread usage of Goldbacks doesn’t seem particularly likely, although the company responsible for Goldback production has gradually expanded the number of states where their notes are routinely traded. Because of the easy-to-understand gold content of denominational Goldbacks, it’s relatively simple for companies to accept these gold bullion notes for trade. 

The passage of the Utah Legal Tender Act allowed the state of Utah to accept gold and silver bullion as legal tender. Is the Goldback legal tender in Utah? Not yet. While the aforementioned law does allow the state to adopt localized legal tenders made from gold and silver, the state has not formally adopted the Utah Goldback as a form of payment. 

Gold Content of Goldbacks 

How much gold is in a Goldback? The amount of gold in a Goldback depends on the denomination of your note. The lowest denomination for the currency, the 1 Goldback, contains 1/1000 oz of pure gold bullion. Denominations are available in 1, 5, 10, 25, 50. The 50 Goldback note contains fifty times the gold of the 1 denomination, and the 5 contains five times more gold than the 1. You get the point; converting between different denominations is extremely easy, which takes the guesswork out of trading gold bullion for goods and services. 

Top 5 Reasons to Own Goldbacks 

Let’s get down to it! Below, we’re going to take a closer look at the top 5 reasons to own Goldbacks. Since their inception just four years ago in 2019, the Goldback has become a premier investment vehicle for gold stackers. Some people in Utah, Nevada, and New Hampshire use the Goldbacks to purchase goods with actual gold. Other investors just like the brilliant, beautiful designs on the reverse of these unique notes. 

But what are the top 5 reasons to own Goldbacks? We find that the real gold content, affordable cost, fungibility, usable currency status, and counterfeiting protections are some of the top reasons to own Goldbacks. 

Real Gold Content 

Let’s be real. The main reason people buy Goldbacks is that they contain actual gold. While these bullion pieces resemble the look of legal tender bank notes, they’re actually minted with .9999 fine gold. The precious metal content of a Goldback depends on its denomination. The lowest denomination, the 1 Goldback note, contains 1/1000 of an ounce of gold bullion. Each denomination above it contains more gold. This caps off at the highest available denomination, the 50 Aurum Goldback. This note features an impressive .050 troy ounces of gold. 

Without the real gold content, people likely wouldn’t be talking about Goldbacks in the first place. We certainly wouldn’t be writing about the product on our precious metals blog! Goldbacks were initially created to help fans of the gold standard find a currency that fits their ideology. For many consumers in Utah, buying goods and services with intrinsically valuable gold bullion just makes sense. 

Even if you don’t plan on buying a computer using Utah Goldbacks, the high gold content of the Goldback is one of the top reasons to own Goldbacks. 

Affordable Cost 

How much do Goldbacks cost? Goldback prices depend on the current spot price of gold bullion. When gold’s price spikes, the cost of a goldback will increase as well. Goldbacks are also sold at a small premium over spot, so investors should keep this in mind. The affordability of these products is one of the big reasons to own Goldbacks. Collectors who want some gold in their portfolio but don’t want to spend thousands might consider Goldbacks a great option. 

The variety of denominational notes is also one of the major reasons to own Goldbacks. A 50 Aurum Goldback is going to cost almost precisely fifty times the price of a 1 Aurum Goldback. Converting between different denominations is simple, and the affordable quantity of gold contained in each note remains one of the best reasons to own Goldbacks. 

Goldbacks are Fungible 

Are Goldbacks fungible? Yes – Golbacks are fungible! In the context of currency, fungibility means that each single Aurum note is interchangeable with another. Fifty 1 Aurum Goldbacks are worth approximately one 50 Aurum Goldback. This means that they’re extremely easy to trade and exchange without the necessity of complicated conversion charts. The fungible nature of the Goldback is one of the most important reasons to own Goldbacks. 

This fungibility is most helpful to people who plan on using their Goldbacks to conduct business and trade. But even basic gold collectors who appreciate an interesting monetary system tend to love the Goldback’s ease of divisibility. When we discuss the top 5 reasons to own Goldbacks, the currency’s fungible nature is impossible to skim over. 

Goldbacks contain actual gold, but their fungibility makes them usable as currency. Talk about an interesting and unique gold bullion product! 

Usable Currency 

Are Goldbacks a usable currency? Goldbacks are not legal tender, but they can be used to conduct business in certain states and municipalities. Utah, Nevada, and New Hampshire are the main places where Goldbacks might be regularly used. If you shop around Salt Lake City, you’re likely to come across a shop that offers to sell you items for Goldbacks. Typically, shop owners will use technology or numismatic knowledge to make sure that the Goldbacks they accept are legitimate and not counterfeits. 

When we dreamed up the 5 reasons to own Goldbacks, we knew that their place as a legal tender would have to make the list. It’s a bit complicated, because Goldbacks aren’t technically a legal tender in any of the fifty states. But because local governments are allowed to set their own requirements for legal tender, it’s not out of the question that the Utah Goldback might eventually be accepted as legal tender by the Utah government. 

Nearly Impossible to Counterfeit 

Gold manufacturer Valaurum worked hard to make their Goldbacks as difficult to counterfeit as possible. Their hard work has paid off; the Goldback features several anti-counterfeiting features that help investors to secure their collection against the threat of scamming counterfeiters. In fact, we’d say that the security features of this product are some of the most potent reasons to own Goldbacks. 

First, note that the negative image decorating the reverse of each Goldback has both a visual field and a texture. Counterfeiters operating sophisticated operations might struggle to replicate this look and feel. Additionally, the glistening look of the gold used to make Goldbacks is difficult to emulate – even with advanced counterfeiter technology. Finally, the intricate detail of the obverse on our Goldbacks makes them nearly impossible to duplicate. 

Collectors looking for reasons to own Goldbacks should understand that these pieces are exceptionally difficult to counterfeit. Because of their relatively low total value and high affordability, it would be difficult to even find counterfeiters willing to put the work in to scam people with fake Goldbacks. 

Goldbacks are also carefully vetted by Hero Bullion for authenticity and legitimacy. We look through every single shipment we receive to make sure that your Goldbacks haven’t been tampered with. If you’re still looking for a couple reasons to own Goldbacks, Hero Bullion’s commitment to transparent and honest selling should help you give these unique products another look. 

How to Buy Goldbacks 

Now that you’ve read over our top 5 reasons to own Goldbacks, it might be time to consider the investment for yourself. While these products were originally very popular in Utah and Nevada, the company behind them continues to expand to encompass more of the United States. Perhaps even more importantly, it isn’t just traders who are interested in the top reasons to own Goldbacks. 

That’s right – a growing class of numismatic investors are putting their money on Goldbacks. Each year, we sell thousands of Goldbacks to collectors who appreciate their uniqueness, historical appeal, and beauty. Keep reading for some advice on how to buy Goldbacks. 

Authorized Distributors 

We recommend doing business with authorized distributors. Hero Bullion is an authorized distributor of Goldbacks, and we’re even listed on the company’s website. We’ve been selling Goldbacks to collectors since the series first began in 2019. We genuinely believe that these are some of the coolest gold products on the market, and we’re excited to share them with our wonderful customers. 

You might be able to buy Goldbacks from non-authorized distributors through the secondary market. If you go this route, we recommend taking steps to evaluate your Goldbacks for legitimacy. The last thing you want is to end up with a fake Goldback worth only a fraction of what you paid for it. 

Trade and Barter

Like we mentioned when discussing the top reasons to own Goldbacks, these products are used as actual currency to purchase goods and services in certain parts of the United States. Particularly in Utah and Nevada, you might find quite a few retailers who are willing to either accept Goldbacks for products or give you Goldbacks for your services. 

Researching online can help you find some of the many business establishments that accept Goldbacks for payment. If you’ve always dreamed about a return to the gold standard, then Utah may be a fantastic place for you to do business in pure gold Goldbacks. 

Tips for Collectors 

Although Goldbacks are some of the most secure and counterfeit-resistant gold products on the market, there’s still a few things investors should know before investing in this line of products. Now that you understand some of the reasons to own Goldbacks, it’s time to take a closer look at how to buy Goldbacks safely and securely. 

Verifying Authenticity 

Verifying the authenticity of your Goldback should be pretty easy. If you’re unsure, checking with an expert numismatic grader might be a good option. For most investors, it’s pretty easy to make sure that the details on your Goldback match up with the details listed on the official website for Goldbacks. 

Researching and Comparing Prices

While the affordability of these gold notes remains one of the top reasons to own Goldbacks, remember that they are still sold at a premium. Always check out a few different authorized dealers before choosing one to do business with. Hero Bullion works hard to keep our premium costs low, so keep checking back before you buy your next Goldback! 

Final Thoughts: 5 Reasons to Own Goldbacks

Goldbacks are one of the most fascinating gold products on the market. We’re certainly excited to see such an accessible, beautiful gold-based currency being used all over the Western United States. There are several big reasons to own Goldbacks, and we hope you’ll check out our wide selection of Utah, New Hampshire, and Nevada Goldbacks! 

You might also be interested in: 

• 5 Largest Gold Coins in History
• Presidential Gold Dollar Coin Value
• How to Grade Coins at Home