Goldback: A Local Gold Currency for Everyday Spending?

Imagine using real gold to pay for groceries or tip your server. That’s the idea behind Goldbacks, a company offering a unique form of “local, voluntary currency” backed by tiny fractions of an ounce of gold.

“It’s designed for local use,” explains Goldback marketing manager Jeff Meigs. “People can buy goods and services at businesses that choose to accept gold as payment.” Each Goldback contains just 1/1000th of an ounce of gold and isn’t legal U.S. tender. However, in states like Nevada where gold is an accepted form of payment, businesses can choose to accept Goldbacks.

Proponents of Goldbacks see them as a way to hedge against inflation. “The government keeps printing more dollars, making them worth less,” says Meigs. “Gold, on the other hand, has a separate value because it’s rare.”

While some Northern Nevada businesses accept Goldbacks, they’re rarely used by customers. Jacob Peterson, owner of The Reno Gold Exchange, acknowledges the concept’s potential. “Gold has historically increased in value, while dollars buy less over time,” he says.

However, Peterson highlights a key drawback: the cost. A Goldback is priced significantly above the market value of its gold content. Today, an ounce of gold costs around $2,200, making a single Goldback intrinsically worth about $2.20. Yet, you’d pay $4.60 to buy one online.

This premium is a trade-off many customers make, according to Peterson. They can’t afford a full ounce of gold, so they buy smaller amounts at a higher price per ounce. “It’s a way for people to invest in gold in smaller quantities,” he explains.

Peterson views precious metals as a long-term store of value, not a way to get rich quick. “Look at gas prices in the 60s,” he says. “A silver quarter back then is worth $4.40 today, roughly the price of a gallon of gas.”

Goldback believes widespread adoption could create communities with more stable purchasing power over time. “It’s for people who want to spend in gold, diversify their holdings, or prepare for emergencies,” says Meigs. “Ultimately, it comes down to a choice: spend in dollars or spend in gold?”

Whether Goldbacks become a mainstream method of payment remains to be seen. However, they offer an intriguing alternative for those looking to incorporate gold into their everyday transactions.

Credits: 2News

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