How to Pay with Goldbacks

Using Goldbacks in Everyday Transactions

One of the most revolutionary aspects of Goldbacks is that they're not just for collecting or investing—they're designed to be used in everyday transactions. This practical application of gold as currency represents a return to sound money principles while offering a modern, convenient form factor. This guide will walk you through everything you need to know about using Goldbacks for purchases and exchanges.

Understanding Goldback Value

Before making transactions with Goldbacks, it's important to understand how their value is determined. Each Goldback contains a specific amount of 24-karat gold:

• ½ Goldback contains 1/2000th troy ounce of gold
• 1 Goldback contains 1/1000th troy ounce of gold
• 5 Goldback contains 1/200th troy ounce of gold
• 10 Goldback contains 1/100th troy ounce of gold
• 25 Goldback contains 1/40th troy ounce of gold
• 50 Goldback contains 1/20th troy ounce of gold
• 100 Goldback contains 1/10th troy ounce of gold

The base value of a Goldback is tied to the current spot price of gold. For example, if gold is trading at $2,000 per troy ounce, a 1 Goldback (containing 1/1000th troy ounce) would have a gold value of $2. However, Goldbacks typically trade at a premium above their gold content due to manufacturing costs, artistic value, and their utility as a practical currency.

Determining Fair Exchange Rates

When using Goldbacks for transactions, it's important to agree on a fair exchange rate. There are several approaches:

1. Gold Spot Price Method: Calculate the gold value based on the current spot price, then add the standard premium (typically 15-25%). Many Goldback users check the daily gold price before making transactions.
2. Fixed Dollar Value: Some merchants set a fixed dollar value for Goldbacks that they update periodically. This simplifies transactions but may not reflect day-to-day gold price fluctuations.
3. Market Rate: Use the current market rate at which Goldbacks are trading. This can be checked on various websites or apps that track Goldback values.

For convenience, many Goldback users utilize mobile apps that calculate the current value of Goldbacks based on up-to-date gold prices. These tools make it easy to determine fair exchange rates on the spot.

Making a Purchase with Goldbacks

When paying with Goldbacks, follow these simple steps:

1. Confirm Acceptance: Before attempting to pay with Goldbacks, confirm that the merchant or individual accepts them as payment. The network of businesses accepting Goldbacks is growing, particularly in states where Goldbacks are well-established.
2. Agree on Value: Discuss and agree on the exchange rate or value of the Goldbacks for this transaction.
3. Select Denominations: Choose the appropriate combination of Goldback denominations to cover the purchase amount. Having a mix of denominations makes it easier to pay exact amounts.
4. Handle with Care: While Goldbacks are durable, it's still best to handle them carefully. Avoid folding, creasing, or exposing them to moisture.
5. Complete the Transaction: Hand the Goldbacks to the merchant, who may verify their authenticity using a UV light to check the security features.

Receiving Change

When a transaction doesn't match exactly with Goldback denominations, there are several options for handling change:

• Receive change in lower Goldback denominations
• Receive change in traditional currency
• Apply the difference as store credit for future purchases
• Round up or down to the nearest Goldback denomination (for small differences)

Proper Handling and Storage

To maintain the condition and value of your Goldbacks when carrying them for transactions:

• Use a Protective Wallet: Consider using a specialized wallet or sleeve designed for Goldbacks to prevent damage.
• Avoid Excessive Handling: While Goldbacks are designed to be handled, excessive touching can eventually affect their condition.
• Keep Dry: Protect Goldbacks from moisture and extreme temperatures.
• Store Flat: Avoid folding or creasing Goldbacks, as this can damage the gold layer.

Building a Network of Goldback Users

The utility of Goldbacks increases as more people and businesses accept them. Here are ways to help build the Goldback economy:

• Introduce friends, family, and local businesses to Goldbacks
• Share information about the benefits of gold-backed currency
• Support businesses that accept Goldbacks
• Join online communities of Goldback users to find new places to spend them
• Consider offering a small discount when receiving payment in Goldbacks for your own goods or services

Legal Considerations

While Goldbacks are not legal tender (government-issued currency), they are completely legal to own, buy, sell, and trade in the United States. They function as a voluntary private currency and a commodity-based medium of exchange. When using Goldbacks for business transactions, normal tax reporting requirements still apply, just as they would for any barter transaction or payment received in gold.