Are Goldbacks Worth Collecting?
Are Goldbacks worth collecting or not?
Goldbacks are a family of alternative, voluntary currencies that are used and traded all over the Western United States. Hundreds of businesses accept Goldbacks as payment, and some savvy investors might actually save money by paying for goods and services with Goldbacks instead of fiat currency like the United States Dollar.
But not everyone who buys Goldbacks sees them as a usable, tradable currency. In fact, we find that a growing number of Goldback buyers are more interested in their value as collectable assets.
Are Goldbacks worth collecting? We certainly think they are. Despite their explosive growth in popularity over the past few years, the company behind Goldbacks is still relatively small. This means that Goldbacks are a finite currency much rarer than any other kind of banknote. When we combine this with the Goldback’s actual gold content, you get a collectible gold product unlike any other.
So, What are Goldbacks?
We explained the concept briefly in the section above, but some readers might need a bit more context. Goldbacks are produced by a company named Goldback, Inc. Following the passage of the Utah Legal Tender Act, this Utah-based company decided to try their hand at creating a new currency.
To the excitement of many dedicated gold stackers, they felt that the best way to start a new currency would be to peg its value directly to gold. This is where the Goldback gets its name. Goldbacks contain an actual percentage of real gold bullion.
Fast-forward to 2023, and the Goldback project has expanded considerably. Now, the currency is traded informally throughout five states:
- South Dakota
- New Hampshire
Are Goldbacks worth collecting? To answer this question, we should take a look at the actual gold content they contain.
Goldback Gold Content
The single Goldback note, which is its smallest denomination, contains 1/1000 oz of pure gold bullion. Each larger denomination includes a fungible quantity of that same amount. In other words, 5 Goldback notes contain 1/200 oz of gold bullion, and 50 Goldbacks contain a much larger gold total of 1/20 oz.
Are Goldbacks worth collecting or investing in? Some investors stay away from Goldbacks because of their high premiums. Premium costs per ounce of gold are indeed higher with Goldbacks than many of the other gold products we sell. But this doesn’t mean they’re not worth collecting.
To answer the question of, “are Goldbacks worth collecting,” we’ll need to take a closer look at the beautiful designs that have helped popularize them.
Each Goldback series comes from a different U.S. state. The first family of Goldbacks released was Utah. In 2023, we have five different groups of Goldbacks for collectors to buy. South Dakota was the last to be released.
Every Goldback emphasizes a different virtue. On the obverse of a Goldback, you’ll find the feminine personification of that virtue, along with its Latin name. The detailed scenery around each woman on the obverse of every Goldback reminds us of the culture, history, and beautiful wildlife of the state from which the golden note hails.
The beautiful designs pair well with the high gold content of these brilliant notes. Are Goldbacks worth collecting? To some investors, their beauty alone makes Goldbacks an unparalleled investment option.
Final Thoughts: Are Goldbacks Worth Collecting?
Are Goldbacks worth collecting? Ultimately, the choice is yours. Some collectors who are focused on getting the most gold possible for their money balk at the high premiums required to buy Goldbacks.
But to a growing class of collectors, the beautiful images, novelty of the concept, and usability of Goldbacks makes them a must-have gold investment.
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About The Author
Michael Roets is a writer and journalist for Hero Bullion. His work explores precious metals news, guides, and commentary.