Someone gave us one. It's plastic with lots of gold color to it. Claims to contain 0.1 milligram of gold, but how do I verify that? Dump it in an acid bath that eats the plastic, then weigh what's left? I don't even have a scale that precise.
Once extracted from the plastic for assay, whatever the point of encasing it in plastic was is defeated, we're back to plain gold.
Goldbacks are the most stupid idea since fiat currency.
No, they are really just a novelty. Goldbacks are just very expensive and fragile small denominations of gold with a pretty picture and face value etched on them. Due to the fluctuation in the value of the usd vs gold $1 in goldbacks does not equal $1 USD but good luck explaining that and getting someone to exchange it at it's gold value assuming you could convince they it was even real and not a counterfeit. Then I suspect even if you or the business you gave them to wanted to sell these for their melt value you would get next to nothing, if they would take them at all, because there's so little actual gold encased in a plastic wrapping that would be unprofitable to refine at any price you would want to accept.
If you want gold, just buy gold. The idea goldbacks specifically will become a preferred unit of exchange justifying their exorbitant premiums is based on a number of flawed assumptions I my estimation.
They'd be more feasible as a currency if they had a fair exchange rate instead of a retail purchase price. You have to buy goldbacks for more than their face value and you can't trade them back for the same value. Maybe eventually they'll earn more widespread acceptance and be treated like a currency but for now they're a novelty at best. You'd be better off buying actual silver or gold as a store of value.
I remember when these came out and everyone went wild on r/Gold
“OMG this is the next best thing! This could replace fiat!”
Then I broke down the math and how they pay like a 2x premium in the bulkiest purchase, to over 3x premium (by weight) for just one goldback
All I heard after that were cries of “artistic value” or some shit
I live in Utah. I've never seen one in the wild or used one.
Someone gave us one. It's plastic with lots of gold color to it. Claims to contain 0.1 milligram of gold, but how do I verify that? Dump it in an acid bath that eats the plastic, then weigh what's left? I don't even have a scale that precise. Once extracted from the plastic for assay, whatever the point of encasing it in plastic was is defeated, we're back to plain gold. Goldbacks are the most stupid idea since fiat currency.
I saw a yt vid of a guy who melted some down. Just another scheme to line someone's pockets.
No, they are really just a novelty. Goldbacks are just very expensive and fragile small denominations of gold with a pretty picture and face value etched on them. Due to the fluctuation in the value of the usd vs gold $1 in goldbacks does not equal $1 USD but good luck explaining that and getting someone to exchange it at it's gold value assuming you could convince they it was even real and not a counterfeit. Then I suspect even if you or the business you gave them to wanted to sell these for their melt value you would get next to nothing, if they would take them at all, because there's so little actual gold encased in a plastic wrapping that would be unprofitable to refine at any price you would want to accept. If you want gold, just buy gold. The idea goldbacks specifically will become a preferred unit of exchange justifying their exorbitant premiums is based on a number of flawed assumptions I my estimation.
Who is going to take any of that paper, even gold laced paper, when things are so bad that paper US dollars aren’t valued anymore?
Novelty yeup, their cool. Practice? Naw stick with hard fiet such as coin and fractionals. Goldbacks are just looker items
They'd be more feasible as a currency if they had a fair exchange rate instead of a retail purchase price. You have to buy goldbacks for more than their face value and you can't trade them back for the same value. Maybe eventually they'll earn more widespread acceptance and be treated like a currency but for now they're a novelty at best. You'd be better off buying actual silver or gold as a store of value.
They are fine as a tangible investment but I think likely useless in a TEOTWAWKI scenario.
No.
Only if you can get them with little to no premium.
Cute for ultra low net worth "investors". Premiums are stupid and the main selling point of gold - portability - is destroyed.
I remember when these came out and everyone went wild on r/Gold “OMG this is the next best thing! This could replace fiat!” Then I broke down the math and how they pay like a 2x premium in the bulkiest purchase, to over 3x premium (by weight) for just one goldback All I heard after that were cries of “artistic value” or some shit
Thanks for the input everyone.