Look:
Goldbacks are getting some serious attention. If you haven’t heard of them before, well, imagine something like the usual paper money we use, but made of pure gold.
We’re not talking about coins or anything like that, but ultra-thin sheets of shiny yellow metal layered onto this flexible polymer material.
Without a doubt, people are digging the fact that they’re not just pretty paper.
Today, we’ll cover the following:
- What are Goldbacks and are they legit?
- Are they real money and legal to use?
- Are Goldbacks a good investment?
- Their pros and cons
Note: Gold & Silver Central is for informational and educational purposes only, and does not offer any personal financial advice. Please consult with a professional before making any decisions.
Now with this disclaimer out of the way, let’s get started.
What Are Goldbacks?
Imagine fiat money and precious metals had a baby, and you’d get Goldbacks or Aurum Gold Notes (AGNs for short).
Unlike regular old paper money that’s just paper, Goldbacks are literally like a golden ticket.
Each one is made with super thin 24-karat gold layered onto some flexible stuff. So, not only do they look awesome, but they’re also pretty tough.
Don’t confuse them with the gold certificates though.
Here are a couple of examples of different historical US gold certificates for reference:
Back to goldbacks.
What makes the golden money really cool is how they get their value. Each note is backed by a certain weight of gold.
We’re talking tiny fractions like 1/1000th, 1/200th, or 1/20th of an ounce.
This makes them a kind of sound money you can divide and use, which is a big step away from the typical government-backed fiat currencies.
The Goldback idea isn’t new, though.
First, of course were the gold certificates.
But also remember back when people used gold and silver coins?
They were trusted because they were stable and easy to carry around. The gold notes are kinda like a throwback to those times, but with a modern twist.
What’s interesting is that they are not just some form of money, they’re also tiny works of art.
Each note has some seriously intricate artwork and details that tell a story about where they come from.
Plus, they’re super tough to fake thanks to some high-tech anti-counterfeit features.
Legitimacy of Goldbacks
To understand its authenticity, we need to learn how it complies with rules and regulations about currencies and precious metals.
These strict guidelines are enforced by banks and financial institutions to ensure we consumers are protected, and the whole financial system stays steady.
And when it comes to precious metals, the IRS is super strict about purity and quality — no cutting corners here!
So, Goldbacks, with their real gold backing, have to fit into these rules to be seen as a proper currency.
The people who make and issue the golden money have a bunch of legal hoops to jump through to make sure they tick all the right boxes and can be used and accepted for use.
In other words, there are legitimate AGNs and they hold value.
However, the real problem isn’t about whether they are legit, but how to make sure you’re getting an authentic one.
Value And Authenticity
Figuring this out is critical if you’re gonna take Goldbacks seriously as a kind of money or a stash of wealth.
Since each is worth a specific weight of the real shiny yellow metal, it’s not rocket science to work out their value – it’s all about the going rate for gold.
So, how much is a 1 Goldback worth?
That’s simple math.
They come in bits of gold like 1/1000th, 1/200th, or 1/20th of an ounce.
So, to find out how much it is worth, you just need to multiply the weight of the AGN by how much gold is going for per ounce.
That gives you a ballpark figure for its value based on the yellow metal it’s packing.
Sure, their value is tied to the price of gold, but don’t forget the other stuff that could change their price. Things like how many are out there, how much people want them, and even their backstory.
Like any other thing you can buy, sell, or trade, it’s all about what the market’s doing when it comes to the full picture of a Goldback’s value.
Because Goldbacks are worth a fair amount, making sure they’re legit is critical.
The people who make them use all kinds of tricks to stop any fake ones from getting around.
They use things like holograms, tiny prints, intricate designs, and special serial numbers to make sure AGNs are hard to copy and easy to tell apart from the phonies.
It’s also worth checking out who’s making and selling them.
If they’ve got a good name, are clear about how they make them, and follow all the rules, you can feel pretty more confident that you’d get the real deal.
Pros
Since these golden tickets hold value and contain actual gold, they can be pretty good investments for those who want to diversify their portfolio.
Apart from these, here are their other benefits:
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Value you can touch
One of the best things about AGNs is that their worth comes from the gold they’ve got in them.
Unlike regular money that’s just worth something because the government says so, they are backed by real gold.
That’s a big deal for a lot of folks who want to know their money’s safe.
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Playing the field
If you’re looking to spread your bets with your investments, this golden money could be an option to consider.
Historically, precious metals have been a good way to protect yourself against stuff like the economy tanking, inflation, and wild swings in currency values.
But of course, always consult with your financial advisor before making any decisions.
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Easy to use
Because Goldbacks come in small amounts of yellow precious metal, you can use them for day-to-day stuff. No need for big gold coins or bars just to buy your morning coffee!
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Boost local economies
AGNs are all about supporting local economies and businesses. By using them, we can help make our communities more resilient and independent.
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Hard to fake
Even though people might try to make fake ones, Goldbacks are really hard to copy thanks to all the security features they have.
Cons
Of course, like any asset, this new currency has also some downsides. Here are some of them:
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Price Swings
Goldbacks’ value bounces around with the ever-changing market price of gold. This could mean a bit of a rollercoaster ride when it comes to pricing.
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Limited Acceptance
This golden currency is getting some love in certain circles, but they’re not exactly mainstream.
It takes time for a new kind of dough to gain widespread acceptance. So while there are places that accept goldbacks, you won’t be able to use them everywhere you want just yet.
I mean look at how long it took cryptocurrency to gain popularity, and still probably 1% of the population use it these days.
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Not Ideal for Small Purchases
AGNs are great for larger transactions.
But when it comes to buying small stuff, they might not be the best fit because even the smallest Goldback has quite a bit of value given that it’s backed by gold.
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Safekeeping Issues
Since these notes are actual gold, storing and securing them can be a bit of a headache, especially if you’re dealing with a bunch of them.
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Potential Legal and Regulatory Hurdles
The world of crypto and precious metals is always evolving, and that could bring up some legal and regulatory questions for this currency in the future.
Are Goldbacks Legit? (The Verdict)
So…
- Are goldbacks worth buying?
- Are Goldbacks legit and legal to use?
They definitely are legit and legal to use.
They’re an interesting mix of old-timey precious metals and everyday paper money. Because of the real gold in them, they have a solid, can’t-ignore-it value.
You can find these notes in all sorts of sizes, and technically you can use them pretty much for anything.
And if you’re playing the investment game, they’re an interesting way to spread out your risks.
Although, we prefer Gold IRAs to diversify your portfolio with precious metals.
Check out our video about this type of individual retirement accounts if you’re not familiar with it:
Call Augusta at (833) 989-1952 to learn more!
But goldbacks aren’t all sunshine and rainbows.
The value of those can do a bit of tango because it’s tied to the gold market, and that’s always dancing to its own tune.
Plus, they haven’t become everyone’s cup of tea just yet.
As for are goldbacks a good investment, we’ll say that AGNs are like the new kids on the block in the world of alternative currencies.
Sure, they’ve got this interesting blend of being useful and having real value, which makes them stand out from the crowd.
But their ticket to being widely accepted as a legit currency really hinges on how well they can steer through the winding roads of the financial world.
At this point it’s unclear how good of an investment goldbacks are.
We have a better alternative to suggest:
If you want to diversify with precious metals, consider buying them in an IRA with the #1 recommended company in the United States.
Augusta Precious Metals has a stellar reputation, offers white glove treatment, and does 95% of the paperwork with their high net worth customers.
If that’s something that interests you, give their team a call at (833) 989-1952 to learn more.
You can also grab their FREE gold IRA guide here, and get a FREE GOLD coin when you open an account with Augusta.
Now, we’d like to hear from you:
- Do you consider goldbacks real money?
- Are goldbacks a good investment in your opinion?
Share your thoughts, questions, or concerns in the comments below!
