Goldback FAQ's

A Goldback is a physical form of currency that contains actual gold. Each note contains a specific amount of 24-karat gold that has been vacuum-deposited onto a polymer substrate. This revolutionary process allows for the creation of spendable gold in small, practical denominations. Goldbacks are designed to be used as an alternative currency for everyday transactions while maintaining intrinsic value through their gold content.

Goldbacks are created using a sophisticated process called vacuum deposition. Gold is vaporized in a vacuum chamber and then deposited onto a polymer substrate in an incredibly thin, even layer. This technology allows for precise control over the amount of gold in each note. The gold layer is then protected by additional polymer layers, making Goldbacks durable and resistant to wear while preserving the precious metal content. Each denomination contains a specific weight of 24-karat gold.

No, Goldbacks are not legal tender issued by the government. They are a voluntary private currency that people can choose to use. However, they are completely legal to own, buy, sell, and trade. Goldbacks function as a commodity-based medium of exchange, similar to how people might barter with silver coins or other valuable items. Their value comes from the actual gold content and the willingness of individuals and businesses to accept them for goods and services.

Florida Goldbacks are available in eight denominations: ½, 1, 2, 5, 10, 25, 50, and 100. Each denomination contains a proportional amount of gold. For example, a 1 Goldback contains 1/1000th troy ounce of 24-karat gold, while a 25 Goldback contains 1/40th troy ounce. This range of denominations makes Goldbacks practical for various transaction sizes, from small everyday purchases to larger investments or savings.

The price of a Goldback is determined by three main factors: the gold content, the premium, and market demand. The base value comes from the actual gold content in each note (e.g., 1/1000th oz in a 1 Goldback). The premium covers manufacturing costs, distribution, and profit margins. Finally, market forces of supply and demand can affect the price, especially for limited editions or particularly sought-after designs. As gold prices rise, so does the base value of Goldbacks.

Goldbacks cost more than their raw gold content due to the premium associated with their production and unique properties. The manufacturing process that transforms gold into a thin, durable, spendable form is technologically advanced and costly. Additionally, the premium covers design, distribution, marketing, and retailer margins. This premium is similar to how gold coins typically sell for more than their melt value. However, the premium on Goldbacks is justified by their unique utility as a practical, divisible form of gold that can be used for everyday transactions.

Goldbacks are designed to maintain their purchasing power over time, primarily because they contain actual gold, which has historically preserved value despite inflation. While short-term fluctuations in gold prices will affect their value, the long-term trend of gold has been upward, especially during periods of currency devaluation or economic uncertainty. Additionally, some Goldbacks may develop numismatic (collector) value over time, particularly first editions or special releases, potentially appreciating beyond their gold content value.

Yes, you can track the approximate value of your Goldbacks based on the current spot price of gold. Since each denomination contains a specific amount of gold (e.g., 1/1000th oz in a 1 Goldback), you can calculate the gold value by multiplying this fraction by the current gold price per ounce. For convenience, many Goldback retailers and websites offer calculators that automatically update with current gold prices. Keep in mind that the actual market price will include the premium over the gold content.

Goldbacks can be a good investment for those looking to diversify their portfolio with physical gold in a practical form. They offer several advantages: they contain actual gold which has historically preserved wealth during inflation; they're more divisible than traditional gold coins or bars; they combine utility as a medium of exchange with store of value; and they may develop collector value over time. However, like any investment, they carry risks and typically include a premium over the spot price of gold. They're best considered as part of a diversified investment strategy rather than a sole investment vehicle.

For long-term investment storage, keep your Goldbacks in a cool, dry place away from direct sunlight, extreme temperatures, and humidity. Consider using protective sleeves or holders designed for paper currency to prevent damage from handling. For larger collections, a home safe, safe deposit box, or insured vault storage may be appropriate. Avoid excessive handling, folding, or exposing Goldbacks to chemicals or moisture. While Goldbacks are more durable than traditional paper currency thanks to their polymer construction, proper storage will help maintain their condition and value over time.

While Goldbacks cannot be directly included in traditional IRAs or 401(k)s, they can be part of your broader retirement strategy as physical assets held outside these accounts. Some investors allocate a percentage of their portfolio to physical precious metals, including Goldbacks, as a hedge against inflation and currency devaluation. For those interested in including gold in tax-advantaged retirement accounts, there are specific Gold IRAs that allow certain gold investments, though these typically focus on coins and bars rather than Goldbacks. Consult with a financial advisor to determine how Goldbacks might fit into your overall retirement planning.

Goldbacks offer several unique advantages compared to other gold investments. Unlike gold ETFs or mining stocks, they provide physical ownership of gold you can hold in your hand. Compared to traditional gold coins or bars, Goldbacks come in smaller, more practical denominations that can be used for everyday transactions. Their polymer construction makes them more durable and portable than comparable gold products. Additionally, Goldbacks combine artistic and potential collector value with their gold content. Finally, they offer a practical way to use gold as money in daily life, bridging the gap between investment and utility that few other gold products can match.