There’s really nothing comparable to the goldback in the gold bullion sector. Investors have a variety of different reasons for collecting gold, and the products they choose to purchase largely depend on these reasons. Investors interested in long-term investments with the lowest possible premiums, for example, are likely to target gold bars. Other investors appreciate the collectable value associated with gold and silver coins.
But goldbacks are something unique. Used as a “complementary currency” to the United States Dollar, goldbacks are being used to barter in several states within the U.S. These alternative currencies are nothing new; hundreds of alt currencies exist in parts of the United States. But goldbacks are more than simply a new form of paper currency; goldbacks are actually made partly of pure gold! Because of this, the value of a goldback is directly tied to the sustainable, consistent value of gold bullion.
Hero Bullion currently sells two different goldback series: Utah and Nevada. Both of these series include multiple denominations with their own beautiful and intricate designs. One goldback is equal to 1/1000th of an ounce of gold. This kind of extremely small fractional denomination is hard to find in the bullion industry, and many investors with limited capital could benefit from these small denominations.
We sell goldbacks in 1, 5, 10, 25, and 50 denominations. This means that the most pure gold someone can buy in the form of goldbacks is around .05 Troy Ounces. Rather than a disadvantage, the low gold content of each individual goldback is intentional. By owning usable notes with manageable amounts of silver, consumers can spend a tangible asset with an established value.
Are you thinking of buying a goldback as a gift, an investment, or just for fun? We’ll help you through every part of the process.
History of Goldbacks
Unlike traditional gold and silver, the history of these Goldbacks is relatively new. The first Goldbacks were created back in 2019 by Jeremy Cordon, who is the President of Goldback, Inc. As he explains on the company’s website, the idea for this novel form of currency came to him in a dream. He had been working closely with his business partners to try to make gold a more usable form of currency in the United States.
But before he created the first modern Goldbacks, Cordon had struggled to find a way to convert gold bullion into a usable currency with the same kind of wide appeal of fiat paper currency. He turned his dream into a reality by partnering with Valaurum, the printing company in charge of manufacturing the Goldbacks Hero Bullion brings you today. Eventually, Valaurum was able to engineer a 50/1000th gold note, completing the full series of Goldbacks.
Once the gold note portion of the development was completed, Goldback, Inc. worked closely with a few different artists to pioneer the unique design that each Goldback now boasts. Since the initial release, Goldbacks have expanded to include both a Nevada and a Utah series. Each series includes five different designs, a novel design each for the 1, 5, 10, 25, and 50 denominations.
While Goldbacks are still relatively new and have not yet seen mass adoption, our readers might be interested to know more about the extensive history of alternative currencies in the United States. Often called “community currencies,” various different types of payment outside of the United States Dollar are being used all over the country. Dozens of different alt currencies are currently being used by American citizens to barter for goods and services, and hundreds of inactive currencies have been used in the past.
Historically, community currencies have been used for a variety of reasons. Community currencies often arise naturally. Members of a given community begin to recognize a given commodity or makeshift currency as legitimate, even if it remains unbacked by any legitimate government or institution. In fact, we could probably even consider the Continental Dollar to be a form of alternative currency!
When the Continental Dollar was first being traded in the United States, our colonies had not yet been victorious in their battle with Great Britain. Because the U.S. was considered such an underdog against the world’s most powerful military, Great Britain, this alternative currency held very little buying power. But when the U.S. shocked the world and won the war, the value of the currency skyrocketed– and its holders became millionaires.
Goldbacks certainly didn’t gain traction as an alternative currency by pure coincidence. As the founder of Goldback, Inc. explains, the goal of the currency was to turn gold into a usable everyday currency. Many of the buyers and users of Goldbacks are people who are skeptical of the declining value of the United States Dollar.
Part of the philosophy behind Goldback, Inc. has to do with the declining, and perhaps even arbitrary, value of the United States Dollar. The “Gold Standard” is the concept that every dollar in a fiat currency should be backed by a physical reserve of gold. The United States was on the gold standard until 1933, when FDR took the country off of the standard. From that point forward, it remained unclear just how much of our currency is backed by the gold stored in the Federal Reserve.
The founder of Goldback, Inc. says that he has long dreamed of creating a way for people to use gold as “regular money.” While gold can technically be used as legal currency in the status quo, it’s tough to find gold bars, coins, or even nuggets in small enough quantities to be useful in day-to-day commerce. How could you purchase a head of lettuce or a pound of beef with gold, for example? You’d need to use a quantity so small that the average bar or coin just wouldn’t work.
But Goldbacks seem to merge the intrinsic value of gold as a commodity with the convenience and classic appearance of note currencies. Each goldback contains 1/1000th of an ounce of pure gold. At this time, the largest denomination available, the fifty, contains 1/20th of an ounce. The creator of Goldbacks has come pretty close to achieving his dream, at least where usability is concerned. These small quantities of gold can easily be used to purchase small daily necessities from businesses that accept them as payment.
Goldbacks have already resonated well with quite a few different audiences. People who are skeptical of the post-gold standard value of the U.S. dollar are likely to appreciate a currency fixed to the stable value of gold. People all over the world are also purchasing goldbacks as gifts. Their value in gold, as well as their incredibly intricate designs, are highly appealing to people looking for a novel gift with long-term value.
Benefits of Buying Goldbacks
Buying Goldbacks is really unlike anything else that Hero Bullion has to offer our customers. Goldbacks contain far less precious metal than our average bullion products, but they also have a far greater degree of usability. The various denominations of goldbacks available also make it possible for consumers to exercise quite a bit of control over how much gold they buy. Someone who only wants to purchase ¼ ounce of pure gold, for example, can do so by buying five 50 denomination Goldbacks.
In this section, we’ll go over some of the main benefits associated with buying and holding Goldbacks.
Support gold currencies. Although Goldbacks aren’t exactly a competing currency to the United States Dollar, they’re still considered alternative tools of barter. The official website for Goldbacks explains that using a currency is much like “casting a vote” for how barter should operate. Spending Goldbacks sends the message that you prefer currencies tied to a limited precious metal.
Excellent gifts. Gold has historically been one of the most popular gifts to give. But for consumers who don’t want to spend $1,000 or more on a full ounce gold coin or bar, the smaller denominations of Goldbacks are a fantastic way to give the gift of gold without overspending.
Long-term investment. It’s hard to say whether or not Goldbacks will really catch on in the United States. But at the very least, the value of gold continues to climb each year. It’s hard to imagine gold losing value, especially considering its historical price trends and the limited supply of the material available globally. If Goldbacks become extremely popular in the future, investors will do well to have a bunch of them stored away. For investors who believe that an alternative currency will one day replace USD, Goldbacks are an excellent way to hedge against financial disaster.
Types of Goldbacks
Usually, we’d use this section to contrast the pros and cons of various types of items in a given bullion category. For example, we’ve written about the advantages of gold coins, bars, and rounds before. With Goldbacks, the situation is a little bit different. We only offer two series of Goldbacks: Nevada and Utah. Each series includes five denominations: a 1, 5, 10, 25, and 50 note.
The most discerning characteristic between these two Goldback series is their design. Whether you’re buying a note from the Utah or the Nevada series, the amount of gold in a single Goldback remains the same. One Goldback contains 1/1000 ounce of pure gold. This means that the highest denomination, 50, is imbued with 1/20th of an ounce of the precious metal.
Utah was the first state to have a Goldback series created for it. All five of the denominations are available, and these notes feature symbolism meant to invoke a sense of the history and culture of Utah. The Goldback, Inc. founder explained that the goal was to show off the state’s history using “vertically-oriented lady virtues.” There are five virtues included on these Goldbacks, one for each denomination:
One Utah Goldback: Prudence (Prudentia).
Five Utah Goldbacks: Truth (Veritas).
Ten Utah Goldbacks: Justitia (Justice).
Twenty-Five Utah Goldbacks: Victoria (Victory).
Fifty Utah Goldbacks: Libertas (Liberty).
Each of the women depicted on these gold notes wear a different outfit, each of which was considered fashionable at one point in Utah’s extensive history. Behind them, various images make reference to the beauty and unique culture of the state and its people.
The newest release by Goldbacks, Inc. is the Nevada Goldbacks series. After the smashing success of the Utah series, the creators of the Goldback are beginning to circulate another series, this time highlighting the “virtues” of the state of Nevada. Like the Utah series, these Goldbacks are available in 1, 5, 10, 25, and 50 denominations. Their depictions include:
The background of each of these notes shows off an element of Nevada’s beautiful scenery and natural wonder. Onlookers can even spot some modern fixtures on the obverse sides of these unique notes.
Frequently Asked Questions About Goldbacks
Goldbacks really are a unique product, even in the fast-paced bullion industry. This section should help to clear up any questions you might have about the Goldbacks Hero Bullion has to offer.
Q: How much gold is in a Goldback?
A: Each Goldback contains 1/1000 ounce of pure gold, or .001 ounce. Goldback, Inc. currently offers five denominations: 1, 5, 10, 25, and 50. The highest denomination is the equivalent of fifty single notes, so it contains .05 ounces of gold.
Q: Are Goldbacks real currency?
A: While Goldbacks are currently not backed by any sovereign government, they can certainly be used as currency in many establishments. Several businesses in Nevada and Utah accept Goldbacks for their products and services. The number of establishments accepting this alternative currency continues to grow each year.
Q: Are Goldbacks durable?
A: Goldbacks are purposely designed to be highly durable. The fifty denomination might occasionally degrade in humid weather, according to its creator. But for most denominations, Goldbacks are generally considered very durable and can withstand heavy circulation without damage.
Buy Goldbacks with Hero Bullion
Goldbacks continue to grow in popularity, both as a usable currency and a fun gift to give friends and loved ones. Hero Bullion takes great care to ensure that your Goldbacks arrive with no damage. Goldbacks are naturally sold at a premium over spot price, but we work to provide our customers with the lowest prices possible for their Goldback purchases.
Do you crave a currency with intrinsic value? Or do you just love the look of the beautiful designs of the Utah and Nevada Goldback series? Buy Goldbacks with Hero Bullion today!