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The goldback is one of the most appealing new forms of gold bullion you can invest in today. They are made of pure gold. A goldback is different from gold bullion, as a goldback is a currency that uses interchangeable denominations. The goldback combines the value of gold bullion with the functionality of traditional banknotes.
You can incorporate them into your precious metals IRA and other gold bullion investments today. You’ll find them in various denominations with various appealing designs. These notes are legal tender in some states as well.
What Are Goldbacks?
A goldback is a banknote that includes a thin gold layer inside a polymer coating. It looks like a traditional banknote, but it is worth a certain amount of gold.
It's a note representing a certain amount of gold. You can order a single goldback worth 1/1000th of an ounce of gold, for example. You could also acquire two 50-goldback notes to have 1/10th of an ounce of gold, meaning the two 50-goldback notes will be worth as much as a 1/10th ounce American gold eagle coin.
The paper design of the goldback makes it easy to secure. You can carry and use them as currency in places where it is valid. But it also includes the same value as other forms of gold bullion.
How Has the Goldback Evolved?
The goldback was first introduced in Utah in 2019. Goldback Inc. was formed that year in Alpine, a suburb of Salt Lake City. The company created the Utah goldback as an inflation-proof currency that allows people to use physical gold to purchase various things.
The states of Nevada, New Hampshire, and Wyoming have since started accepting goldbacks as legal currency and have received their series of goldbacks as of the end of 2022.
How Are They Made?
They are produced by Valaurum, a private manufacturing firm dedicated to minting gold-based banknotes and 21st century cutting edge gold investment products. Goldback Inc. designs each goldback note with a distinct art design with various anti-counterfeit features. The company then sends off the design to Valaurum for production purposes.
Each note receives a small amount of 24-karat gold during production. A polymer then goes over the note to produce a sturdy body. Multiple third-party measurements and x-ray tests will confirm the stability and authenticity of all goldbacks.
Where Can You Buy Goldbacks?
The official Goldback website at goldback.com reports dozens of gold bullion and coin stores sell goldbacks. Many of these companies that sell them are in the four states that currently accept goldbacks as legal tender.
How Do You Store Them?
You can store goldbacks any way you see fit, although it’s a good idea to secure it alongside any other gold bullion you have in your IRA. While they are bendable like any other banknote, a note can retain creases if you bend it too much. It’s best to avoid putting creases in your goldbacks.
You could also store them in your wallet if you’re in an area where they are legal tender. But this option isn’t recommended, as the goldback isn’t the same size as a typical dollar bill and could become lost. Whereas an American dollar bill is about 66.3 by 156.1 mm in size, a typical goldback will be 65 mm wide. A 1-goldback note is 118 mm long, while a 25-goldback note is 156 mm. A 50-goldback note is more massive than a dollar bill at 75 by 178.5 mm.
How Much Is a Goldback Worth?
The amount of gold a goldback is worth is based on the currency’s denomination. One goldback is equal to one-thousandth or 1/1000th of an ounce of gold. Therefore, if you had 10 goldbacks, you would have 10/1000th of an ounce of gold in your hand.
Goldback notes are available in five separate denominations. You can order a note worth 1, 5, 10, 25, or 50 goldbacks.
As of 2022, there are four separate goldback series available. These are goldbacks with designs representing Utah, Nevada, New Hampshire, and Wyoming. You can order goldbacks in all five denominations for any of these states. The values of the notes will be the same regardless of what state appears on its body.
What Does It Cost to Buy One?
The cost to acquire goldbacks will vary surrounding the denomination of the goldback note you’re acquiring and the current market value of gold. You can check with various gold dealers and gold IRA investment firms to learn more about how much goldbacks are worth. The spot price for gold will vary by entity.
Are They a Good Investment?
The goldback has become more widespread in recent years, and it is possible for more states to start accepting goldbacks as legal tender. The simplicity of the goldback and the ability to measure what you have well enough makes it a viable investment.
The goldback’s value is also tied to the same things that other gold bullion forms use, so it will be a worthwhile option for your gold or precious metals IRA.
The company behind goldbacks, Valaurum, also has a flagship gold note product called “Aurum” that could be worthy to look into for gold bug investors and collectors, with their limited release of design showcase collections.
Are Goldbacks Legal Tender?
The initial formation of the goldback is based on the Utah Legal Tender Act, a 2011 law that allows gold and silver to work as legal tender in Utah. Since Utah goldbacks are a form of gold bullion produced by a regulated private mint, it can be legal tender in that state. The three other states that accept goldbacks have also seen many small businesses in their states start accepting them as currency.
What States Accept Goldbacks?
Utah, Nevada, New Hampshire, and Wyoming are the only four states that currently accept the goldback as legal currency as of the end of 2022.
The goldback is considered a voluntary local currency in all of these states. Since the value of the goldback will come from the current gold exchange rate, it is possible to use goldbacks in many transactions. But the voluntary nature of the goldback means that not all businesses or entities in states where it is legal will accept the currency.
Can You Include Them In Your Gold IRA?
Since goldbacks are produced by a private firm and are legal tender in some areas, goldbacks can work in a gold IRA. You can add goldbacks to diversify your currency precious metals IRA today.
You can contact the Birch Gold Group for help adding goldbacks to your gold IRA today. The team at Birch Gold Group can help you learn more about how goldbacks work and how you can incorporate them into your IRA. You can also receive current pricing details on how much it costs to add goldbacks to your IRA by contacting Birch today.
The gold bullion industry has expanded over the years, especially as more people are starting to include gold and other precious metals in their IRAs. The goldback is the latest evolution in the gold bullion industry, as it offers a more functional and convenient approach to handling gold.
You can use goldbacks as legal currency in some states, or you can store them in your IRA for investment purposes. Compared to gold coins and silver coins, they are easier to store, such as in safe deposit boxes.
Goldbacks are worthwhile options to explore when finding a way to improve how well you’re investing in precious metals. Goldbacks are easy to acquire, and you can get them in various denominations. This advancement in gold bullion is an exciting option for investment purposes. And they make great gifts for adults and kids, especially in Christmas stockings for the holidays.
How much can you acquire in goldbacks?
You can acquire as many goldbacks for your IRA as you wish. There are no current rules for how much someone can acquire now.
How many goldbacks should you have?
You’ll require more goldbacks if you plan on investing them in your IRA. You won’t need as many goldbacks if you plan on selling them at a local store as gold prices increase or if you’re interested in collecting gold assets. Those who plan on holding their goldbacks for longer time periods will benefit from having these notes.
How can you tell how much money a goldback is worth right now?
You can check the Goldback Inc. website at goldback.com for details on the current value of one goldback. The rate will change based on the present value of gold.
Is the goldback similar to a cryptocurrency?
Goldbacks are not like cryptocurrencies because goldbacks are physical assets you can carry with you and have some sort of value attached to them. Cryptocurrencies are different, as they are digital assets that are not regulated or centralized in production.
Will the value of a goldback vary based on the state it represents?
The value of a goldback will be consistent among all states. There are five different designs in each of the four states where goldbacks are accepted at this moment. You can collect these and include them in your precious metals IRA and/or use them as gold money in select locations.
What does it cost to buy goldbacks?
The cost will vary by who you contact, with some places offering volume discounts. Check with a seller to see what the prices are today, as the values will keep changing.
Risk Disclosure: Any investments, including precious metals, such as gold, silver, platinum and palladium, come with an inherent risk, where you could end up making less money than what you put in. Before investing your hard-earned cash, be sure to speak with licensed professional financial advisor first. Always remember that past performance is not an indication of future returns.
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