The idea of Goldbacks emerged in Utah, USA, in 2011 as a reaction to economic instability and the passing of the Utah Legal Tender Act. This act legalized gold and silver as accepted legal tender in Utah. Since their inception, they have transcended their original geographic confines and gained recognition as a credible substitute for conventional fiat currency. Launched in 2019, they have experienced swift expansion, with over one million individuals purchasing and trading Goldback gold foil notes within the first four years.
Where are Goldbacks Accepted?
Currently, Goldbacks are available for the following states: Utah, Nevada, New Hampshire, Wyoming, and South Dakota. However, whether a business is willing to accept Goldbacks as payment is voluntary. We looked at a few lists of businesses in Utah that accept Goldbacks as payment. Most were gold dealers or independent small businesses. For example, you may see a company like Joe’s Landscaping on the list but not a large corporation like Whole Foods. That may change in the future, but so far, they are not widely accepted as payment.
Anyone can buy Goldbacks. We have all five states available on our retail website. Also, you can use Goldbacks from other states as payment in another state. For example, it may be possible to make a purchase in Nevada using Utah Goldbacks.
Additionally, like any trade item. You can trade Goldbacks with anyone that agrees to. It would be up to you and the other party to agree to the trade value of the Goldback which would most likely be based on the current spot price of gold. The process would be the same for other trade items such as silver dollars.
Who Produces Goldbacks?
Goldbacks are produced by Valaurum Inc., a company based in Utah, USA with headquarters in Oregon. They are known for their innovative approach to creating gold-based currency, offering individuals a unique and tangible way to hold and transact with precious metals. Valaurum Inc. has been at the forefront of developing Goldbacks as an alternative form of currency that combines the stability of gold with the practicality of paper currency.
What is the Exchange Rate for Goldbacks?
The exchange rate for Goldbacks can vary depending on several factors, including the current market price of gold, local demand and acceptance, and any premiums or fees associated with acquiring or exchanging them. Since Goldbacks are created using gold, their value is linked to the price of gold.
However, it is essential to note that Goldbacks are typically used as a medium of exchange within communities rather than being actively traded on traditional currency exchanges like foreign currencies or cryptocurrencies. Therefore, their exchange rate may not be as readily available or standardized as that of more widely recognized currencies.
In the end, it is what the two parties agree the exchange rate to be like any traded item.
Fiat Currencies vs Goldbacks
Fiat currency is what we know as government-issued traditional paper money. Goldbacks are not government-issued. Unlike fiat currency, goldbacks remain resilient against inflation and devaluation due to their inherent gold composition.
Since their introduction in 2019, goldbacks have witnessed an 82% increase in their exchange rate by March 2024. In contrast, the US dollar has experienced a decline in value during the same period due to inflation. A dollar’s purchasing power has steadily declined since 2020.
Goldbacks vs Foil Notes
Goldbacks are manufactured by a company called Valarum. Its primary product is Aurum® which is the smallest verifiable unit of gold on the market. The dollar version holds a mere 1/1000 oz of .999 fine gold.
Foil notes may be created using Aurum® technologies. Some countries assign a legal tender value to foil notes. But they are more often bought for their gold content or as a collectible. The most popular foil note purchased from our website is the 50mg North American Bald Eagle Aurum®. The second is the 2024 100 mg Year of the Dragon 24K Gold Foil Note, which is sold out on the Valarum website.
Goldbacks present a unique payment alternative; as the dollar’s value continues to decline, it is possible that more states will adopt them
