Depending on your goals, Goldbacks may make a stellar investment. These handsome gold foil notes are a practical alternative to the dollar, joining the stability and slow growth of traditional gold investment with the convenience of paper currency.
For those who live in states in the U.S. that recognize gold and silver as legal tender, Goldbacks provide a convenient way to use gold as currency. That is not the only benefit they provide to investors.
Benefits of Investing in Goldbacks
Use as a Gold-Backed Currency
Spending Goldbacks the way one would use circulating currency feels counter intuitive. Gold is best held for a long timeline to maximize returns on investment.
On the other hand, what good is an investment if it cannot be used in a time of need?
Goldbacks can be spent like cash at participating businesses in almost half of the United States. There is a matter of determining the current exchange rate and some math around making change but as the dollar loses its purchasing power, the purchasing power of gold grows.
While the dollar and world currencies are backed by the faith of their issuing governmental bodies, Goldbacks contain fine gold. This intrinsic value makes them a stable investment in relation to other currencies.
Hedge Against Inflation
As a voluntary currency, Goldbacks have seen more than a 60% growth in their average paper dollar exchange rate since 2019. Most fiat currencies have lost purchasing power since 2019 but the purchasing power of the gold dollar has risen.
The gold price is still susceptible to volatility from numerous forces including supply and demand dynamics, however, in comparison to fiat currency, gold historically exhibits greater resilience.
Investing in Fractional Gold
Investing in gold products that are sold in fractions of one ounce, like Goldbacks, provides a low entry point for gold investment. Gold foil notes are among the smallest sized units of fractional gold that can be purchased.
This does involve a higher premium that you would encounter buying a full ounce of gold at once, but for those employing dollar-cost-averaging principles, presents an accessible and affordable method for investing in gold- And one that yields spendable gold!
What are Goldbacks?
Goldbacks are unique gold foil notes that have been issued since 2019 as an alternative voluntary currency. One of the things that makes Goldbacks unique is their fungibility. They are easily interchangeable and divisible. An investor could exchange a single 50 Goldback for 50, 1 Goldbacks, less processing fees.
Goldbacks impart unparalleled liquidity and divisibility.
Who Should Not Invest in Goldbacks?
If your goals involve a focus on gains based on short-term market fluctuations, Goldbacks may not be the right fit.
If you live in an area that does not recognize gold as legal tender, their liquidity may be less straightforward than other gold products like coins. However, it is possible to trade 1,000 Goldbacks for a single Gold American Eagle. This trade would not be recommended due to the premiums associated with fractional gold products
