Epoch Times
For thousands of years, anyone who wanted to buy goods with gold faced “the small coin problem,” [Goldback president Jeremy] Cordon told The Epoch Times. A 1-ounce gold coin, worth about $2,000, is far too expensive for everyday use, but a cheap gold coin is impractically small.
“Gold is the best money, but it can’t buy a loaf of bread,” he said.
To solve this problem, Cordon used new technology to create a bill that sandwiches a particle-thin gold layer between two layers of polymer—the Goldback. The result can be worth as little as $3.80. More
They’re considered legal tender in four states. To use them you’ll need to track the price of gold in US$. That is until we get rid of the federal government’s ability to print fiat money. – Dr. Tar
It’s a great idea: the value of the article itself has the value of gold because it is gold and the gold can be extracted, and it’s right in your hand. Plus, the tech is available to detect whether there is the right amount of gold in the bill.
https://www.kellycodetectors.com/pages/best-metal-detector-for-gold/
This has the same problem actual specie coins had
You have to trust someone to actually put in the amount of precious metal that they claim they put in.
These bills are even worse than coins. I can do specific measurements like weight, conductivity, specific gravity, etc., to determine if my coin of precious metal is worth what the minter wrote on it. I can have specific safeguards on coins like scalloped edges to help detect shaving to make the coin have less metal than it states.
None of these protections exist in paper currency that most people have never seen that is allegedly suffused with gold.
Is it what it claims to be?
…not really a way I can be sure…
Use silver coins, the value is better suited for everyday transactions.
Problem:
What would it cost in Energy/Fiat Currency to recover that gold from the printed note, turn it to ounces that can be “hooped” to smuggle across a boarder?
Even regular Gold coins are about 3-6% fee to convert to a Fiat Currency.
(Fiat Currency, not the Fiat Italian shit boxes that catch fire & rust)
Wild Bill,
After reading you post, I’m singing the Allman Brothers “Midnight Rider” in my Head!
Cheers!
Interesting idea, and I hope the people behind this business do well.
But I’m going to have to think about it a bit before I decide whether or not to get excited. I have a strong liking for (non-numismatic) coins, ones I can hold in my hands. It’s quite true that the problem with gold coins is the impracticality of small change, but IMO that’s what silver is for, and I have about five thousand silver dimes stashed away for just that purpose (along with a bunch of one Troy ounce gold coins.
The gold and silver I own for wealth preservation rather than investment, and the idea of using gold and silver for everyday purchases in our current environment is one I’ll have to ponder.
This is intriguing, though. I wonder if anybody’s trying to get Goldbacks going in Florida?
It’s got Retsyn(TM)!
@Anonymous February 6, 2022 at 7:06 pm
> It’s got Retsyn(TM)!
Silly Boomer! It’s got Blockchain!
Here in south Texas the real money is in wetbacks
face it … the only thing that will be of worth in the future is what is barterable & what you can defend
… adjust your plans accordingly
Silver has a horrendous premium unless you buy five and ten ounce bars. Still horrendous.
Actually today it wasn’t that bad. Buffalos are cheaper than bars. WTF?
Maybe it sucks…..but I LIKE silver.
Every so often I’ll go down to the jewelers and buys some Mesikin’ silver coins. To hoard. In an old timey spittoon.
Why?
I dunno’, but like I always say, if you do something for long enough, something interesting is bound to happen.
Gold is at a thousand dollars premium per ounce. Hmmm…
Bring back S&H Green Stamps.
They are hedging bets. Biden will drop dead, or not. A thousand dollar premium on gold can’t sustain long.
Gold for large transactions;
Silver for intermediate transactions;
Copper for the smallest tranactions.
All are available as “rounds.”
silver baby – junk silver coins for future small purchases – get ’em while you can!!!
@Francis W. Porretto February 7, 2022 at 5:55 am
> Gold for large transactions;
> Silver for intermediate transactions;
> Copper for the smallest tranactions.
The economics! It burns!
(for those from River City: If you want pure barter, there’s nothing different about gold, silver, copper… eggs, beer, NFTs; if you want currency, there can be only one)
$1,000 per ounce premium for gold? Where?!?
Kitco will sell you a Maple Leaf for $1,915, and the spot price for AU is about $1,820 or so. That’s a premium of $95 or just over 5%.