Goldbacks represent a novel approach to alternative currencies, as they combine the tangible value of gold with innovative designs in a highly compact and portable form.
Each Goldback© gold foil note contains .999 fine gold encased in a durable polymer coating, making it both practical and visually striking. Currently, Goldbacks are issued in Utah, Nevada, New Hampshire, Wyoming, and South Dakota designs.
This year, a Florida Goldback series has been added to the lineup.
What are Goldbacks?
Goldbacks are an alternative local currency backed by and composed of fractional amounts of gold. Introduced to facilitate local trade and preserve wealth, they offer a portable, divisible, and intrinsically valuable alternative to traditional money. The gold foil note series originated in Utah in 2019 and was inspired by the desire to create a practical gold-based currency. Each note contains precise measurements of gold, ensuring consistent value.
States with Goldbacks
Utah
Utah was the first state featured on Goldbacks, and Utah Goldbacks were issued in 2019.
Nevada
Nevada Goldbacks were issued in 2020. Their designs emphasize the state’s rich mining history and cultural heritage.
New Hampshire
In 2021, New Hampshire Goldbacks were launched, aligning with the Free State Project’s emphasis on personal liberty.
Wyoming
Wyoming Goldbacks debuted in 2022. Their designs reflect the state’s heritage, featuring imagery of pioneers and Native American culture.
South Dakota
In 2023, South Dakota Goldbacks were introduced. Known for their unique artistic elements, these notes celebrate the state’s historical landmarks and values.
Florida
Florida announced a Goldback series in October 2024, with the official release scheduled for January 15, 2025. Anticipated designs will highlight Florida’s diverse cultural and natural heritage.
Denominations of Goldbacks
Goldbacks come in several denominations, each containing a specific fraction of a troy ounce of gold:
- 1 Goldback: 1/1000th of a troy ounce
- 5 Goldbacks: 1/200th of a troy ounce
- 10 Goldbacks: 1/100th of a troy ounce
- 25 Goldbacks: 1/40th of a troy ounce
- 50 Goldbacks: 1/20th of a troy ounce
Florida’s series will introduce new denominations, including 1/2, 2, and 100 Goldbacks. The new denominations will contain
- ½ Goldback: 1/2000th of a troy ounce
- 2 Goldback: 1/500th of a troy ounce
- 100 Goldback: 1/10th of a troy ounce
These denominations allow for precise fractional ownership of gold and make it easier to use Goldbacks for transactions of varying sizes. The addition of new denominations like the 1/2, 2, and 100 Goldbacks provides even greater flexibility and accessibility for users.
Benefits of Using Goldbacks
Goldbacks offer several unique benefits that make them an attractive alternative to traditional currency and gold investments:
Intrinsic Value
Each Goldback contains a precise amount of .999 fine gold, giving it intrinsic value. Unlike fiat currencies, which are backed by the government’s promise, Goldbacks are backed by the tangible value of gold.
Hedge Against Inflation
Gold has historically been a reliable hedge against inflation. As the value of fiat currencies can decrease over time due to inflation, the value of gold tends to remain stable or even increase. Goldbacks, being gold-backed, offer similar protection against inflation.
Portability and Divisibility
Goldbacks are designed to be fungible, portable, and easily divisible. They come in numerous denominations, making it easy to use them for transactions of different sizes. This divisibility is a significant advantage over traditional gold bars or coins, which can be cumbersome to divide.
Diversification
Goldbacks offer a way to diversify your investment portfolio. By holding Goldbacks, you are investing in physical gold, which can provide stability and reduce risk compared to holding only fiat currencies or other types of investments.
Privacy
Transactions using Goldbacks can offer a higher degree of privacy compared to electronic transactions. This can be appealing to individuals who value financial privacy and want to minimize their digital footprint.
Educational Value
Goldbacks can serve as an educational tool to teach about the value of gold, the concept of intrinsic value, and the importance of sound money principles. They can be used to introduce these concepts to children and adults alike. Goldbacks represent a blend of art, utility, and intrinsic gold value.
Their adoption across states underscores a growing interest in alternative currencies. As new states like Florida prepare to launch their series, the future of Goldbacks looks promising. Whether for practical use or collection, Goldbacks continue to inspire and innovate, offering a unique way to hold and use gold in everyday transactions.