Am I An Idiot for Buying Goldbacks? Premiums Explained! 

@NayokeHenji NOTE to paragraph 3. You are correct that it would cost you $3,650 to purchase 1,000 One-Goldbacks or 1 Troy Oz gold. But If you want to convert it into gold here is how to do it. You contact the UPMA and convert your 1,000 Goldbacks into gold bullion, Gold Eagle. The UPMA purchases your Goldbacks at the daily price. $3.65 minus 5 basis points ($30.25) Which give you $3,650 to convert which equals 1.74 approximately in gold eagles through your UPMA account. So again much of the value in owning Goldbacks is in the utility. they are easily sold, traded, bartered, gifted even tipped. Use them and when you need to convert them. There is room for many uses when you hold Goldbacks. I hope that clears things up a bit.

I've done 50+ transactions now with Goldbacks. I've sold a ton, tipped some, gifted some, bartered with them, donated some, transferred some, bought a pew pew with some, paid my lawn service with some, used at a farmers market, had 3 clients pay in Goldbacks and even banked several. Next, I'm going to lease some out. They are very useful, I'm finding. Currently I’m in New Mexico on business, not a Goldback issued state and I’ve sold and traded all 27 of the One-Goldbacks I had. Wherever you are and someone is willing to trade you for your Goldback you are good to go.

@@danielbbq exactly. 24KGold is 24Kgold, even if the origin is Zimbabwe. It represents its own built-in hedge against inflation and is also a near-perfect black-market currency. This is even more true now that it's available in the most convenient and fractionalized - and least-counterfeitable - form that the Goldback represents. I'm in Canada, a country that, thanks to generations of political idiots and indoctrination, is now on the cusp of full-blown communism. Our dollar will soon be useless, cash will be replaced with digital currency that governments can access and seize without notice (as punishment and "cancellation" for speaking out against them) and millions will have no other choice but to barter amongst themselves to survive. This is an environment in which Goldbacks can play a very important role. With Goldbacks we will not have to break out a gram scale to shave off a few flakes of 24K from that one-ounce gold buffalo we'd been hoarding in order to pay for a dozen eggs as was necessary in Venezuela.

a game of musical chairs with extra steps. Once a small group of people start to realize the premium is outrageously high and doesn't honor the 'official exchange rate', the noteholders will begin to panic, the bomb would burst and this whole thing would seen as a ponzi.

@@vander9678 Step 1. Show my Goldbacks. Step 2. Trade Goldbacks for products or services. Step 3. Ponzi exposed. Does anyone else shake their head at these premium poo-pooers naivete? Everything has a premium on it. The retailer makes a minimum of 40% up to - 100%, the manufacturer looks for 100-200%. The premium on a soda is 3k - 8k% yet many still buy soda.

Why yes, yes I do know :) Except for borrowing against my GB's. I would definitely like to know more about that. I'm guessing the UPMA offers that? If so I'll have to give em a call. I love my GB lease. It's great getting free GB's every month.

@@kivie13 yes, call the UPMA they can walk you through it. You can 1. get a loan at 2.4% or 2. get a Visa card and spend like cash. This is a better way to keep your cash than in dollars.

new goal is 100 gold backs. different denomination. just because. even if the whole.thing folds. the collector value will have something. much more rare than typical mint stuff.

Excellent explanation ! ! , hope Scotsdale Stacker reads your comment over and over and over and then maybe he will see the light ! Thank you for your comment . I just pray that my beautifull state of Texas gets on board soon ! !

@@armand8322 if I’m not mistaken Texas is the issue for 2024. South Dakota will release by the end of 2023 if they stay on schedule.

@@redshifts can't wait to get some from them too

@@JG-od3xy Already ordered South Dakota GB's. Now waiting on Texas GB's which is my home state.

Sounds like cope for for paying an 80% premium instead of a 3% for an ounce of gold

It is definitely one of the better options for barter.

You could be right!

@@ScottsdaleStacker Wow I read back my comment and I sound like a total jerk lol. I apologise I'm half asleep and didn't read my own tone well.

@@NayokeHenji I didn’t take it that way, you are all good my friend. 🙏

They said the same thing about cow farts.

@@totallynotthebio-lizard7631 you're right, there's absolutely no difference between gold and cow farts.. 🙄

That was my original thinking. Then just hold on to them for awhile.

At minimum get a set from each state, first year issued, they are selling on eBay for $3,000+. And at that profit you should get 100 sets, no 1,000 sets. And if you didn’t know, during COVID a one Goldback was selling for $50. So the next time SHTF you should have another 1,000 on hand. I sure will.

@@danielbbq 1,000 GB's is a lot. I just got started with 110. Maybe in the future, I might buy more. But at present, the prices have gone up. I remembered 3 days ago, the prices were much lower. If you buy large quantities, every penny increase in price is going to make a big difference. So it's just better to wait until prices have come down before buying more.

​@@BrilloHeadyou'll be waiting for eternity. Stupid people waite, smart people buy

@@David-rz7jj You do your own thing, okay? You just fail to understand how much cheaper they were just back in mid December of 2023.

How do the shops that take them put a value on them? Do they calculate the actual gold value that they can contain or pay out a premium?

If they took them here in restaurants and stores. I would use them as my main form of currency. That is forsure!

@@cryptkeeper4507 They should be using the current exchange rate which is posted on the GB website, or around that amount. When it comes down to it, the market decides what they are worth. If you want to pay in GB's but the business owner is trying to scam you by only accepting them at spot value don't pay in GB's or go somewhere else. Edit: Goldbacks have a utility value that for some reason stackers can't seem to wrap their head around and are stuck on spot price. The utility value includes the premium just like your car is worth more than its scrap value. Since I have a GB account at the UPMA I personally am good with whatever their current market value is which is always lower than the exchange rate, at least for now. I stack at home and vault with UPMA and don't live in a state that has them (yet) so I don't try to spend them. The reason I stack is because I can sell them at current market minus 5 percent to the UPMA or Defy the Grid which is a heck of a lot better than any other fractional and the stacker also can't seem to learn that fact no matter how much I tell them.

bitcoin exists lol

@@vander9678 😂😂😂Guy brought up bitcoin

The smaller denomination Goldbacks make sense. Not the bigger ones. Better off getting 1/10 gold coin instead of a 50 Goldback. Easier to liquidate.

@davidortiz3094 I could do that. But I can only 2 to 300 a month on PM. A 1/10th coin would take most of that. And I want to get 100 worth of silver.

Possibly if it was original art. Mass produced printings are not worth as much as originals.

@@ScottsdaleStacker But the series is only 4 years old. I see signatures on all of them. Not sure who they are or are they famous.

The earlier GBs have increased in numismatic value since the artwork has been upgraded. Go to Defy the Grid and look at how much they are selling their early GBs for compared to brand new ones. If you have early ones definitely hold on to them if you can and sell/spend the new ones if you want to use them.

That why I like them for the artwork. And like with coins there is a collector value I think.

Good intentions aside, you end up loosing too much money.

Please do some more research on the Goldback. You’re not fully understanding...Users value Goldbacks by utility not weight. The only way you suffer a premium loss is if you buy/sell to a retail shop. Buy wholesale $3.70, sell/trade/barter at $4.04 or at retail $5. Where is the loss?

​@ScottsdaleStacker how is "money" (value? Fiat?) lost exactly? Are you seeing the free market value of goldbacks decline at a rate more than gold? Do you think the only value of a tool is the value of each individual raw commodity that makes it up? Do people who buy valuable gold jewelry usually take a loss when reselling years later because of the "premium" over melt value?

i wonder why you are wondering why you might spend money in russia

Great post! Most people in the precious metals space just don't understand about these things, and get totally hung up about the "premium." I've taken the double approach of having most of my funds in Alpine Gold and backed by GB's, while at the same time buying as many GBs to hold as I can afford on a regular basis.

Great post. All true. You’ve inspired me: A major hurdle for stackers is the “said premium” of the goldback. Yes, there is a premium and in pure melt value it is high but just like a 2014-W 1 oz Proof American Gold Eagle PR-70 PCGS that is selling for $3,759 doesn’t make it unreasonably excessive to the collector. So does the ease of use, the readiness to accept as money and the gold content, make the Goldback a viable solution to our money problems. Or at least it is the best thing yet. The open-minded, early-adopter or entrepreneurial stackers that purchased goldbacks at $2.25 in 2019 realized 2122.22% increase in value when the SHTF happened, during covid, when they were selling for $50 ea. With 20x more usability, the high demand for the goldback alone justifies the market price. $4.05. When SHTF happens again what will the value of the goldback be? Based on history, the goldback will sell for 733% higher than the retail value at the current highest retail price, $6 ea ($50 ea.). The savvy stacker can buy one goldback for 62% less than the retail price today ($3.70), realizing 1,251% increase during the next SHTF, unless it is worse…. When has gold ever demanded such a profit? Only when held for 50ish years. As for me and my stack, I’ll have a good wad of goldbacks in conjunction with my gold and silver stacks. BTW, first edition goldbacks are already collectables, demanding 362%+ at today’s market. Do I need to expound on the potential value of stacking every state’s first editions when they come out? I think not. Imagine what the value would be if Goldback, inc went out of business. These novelty, collector pieces would skyrocket in value. Just one more reason to have a stack. Let’s call it a “collectors stack!” Oscar Wilde must have envisioned the internet when he said, "And he goes through life, his mouth open, and his mind closed." I know you don’t need an open mind if you have all of the answers. We've been convinced that having an option is essential even if there is no evidence to form one on. It's classic confirmation bias. I look forward to the time when doubters acknowledge their doubts and allow others to form their own informed opinions. And if the Goldback never takes off I'll continue to sell, trade, and barter them for more than I paid for them and be happy at that.

APMEX is selling them for $18. The premium even at $16 for a 5 dollar goldback is high.

@ScottsdaleStacker Yeah you're right. At $3200 that is high, but I just wanted to have one in the stack.

You're buying make believe value that would only be realized in a fantasy "SHTF" scenario. It's about as sensible as surrendering half the value of my fiat to buy a currency that's useful only on the Trappist system planets. It's a great value....if I ever acquire a starship or find a wormhole to catapault me 40 light years....

People melting copper pennies - I love hearing that - as I am also a collector of pennies and the more melted the better for those left.

Lost your credibility after “goldbacks are a great way to stack”.

@@slapdat.byteme Got anything to back that up?

@@slapdat.byteme Any why is that? Plz explain.

Goldbacks are completely fungible. 5 - 1-Goldbacks equals a 5-Goldback, 5 - 5-Goldbacks equals a 25-Goldback. 50 - 1-Goldbacks equals a 50-Goldback.

@@danielbbq Right, at first the math didn't look right! It makes more sense now. Thanks! 😎

Im gonna be real, 3.5% max is terrible. Do you know that $JEPI has a 10% annual dividend?

@@vander9678 this is a good dividend but that is for cash not held gold. Getting 3.5% for something that otherwise sits in a vault is much better than what the vault is paying. Apples and oranges.

So true.

Even if you only buy largest $50 goldbacks you end up loosing almost $2k per Troy ounce.

@ScottsdaleStacker yea I have alwayse been told to buy one oz or more at a time to avoid as much premium as possible. I can't afford such luxury in my life. So I don't hold but a tiny bit of gold.

@@ScottsdaleStacker- You ain't got a clue

​@@ScorpionMetalsGoldbacks are the perfect gold product for the beginner and people on a limited budget. Physical gold for about $5. "Say ¥€$ to Goldbacks." - sykrist

20%? They will need to double before you even break even. My fiat has lost about half its value in 25 years. You lost half within the minute or so it took you to buy the goldback.

​@@kenofken9458 I'm not looking for a profit. But if my purchase power goes up, bully for me.

True, and the money you loose is crazy.

You only lose $30.25 on converting 1,000 Goldbacks to 1.74 oz Gold Eagles. No big loss if you do your research!

If all businesses took them, I’d understand. But here in Arizona. Not a single store takes them. And only one coin shop I found even carries them.

@@ScottsdaleStacker Bullion shop in Show Low Accepts them and sells them. Farmers market on Saturday has vendors accepting them. However, that said I agree with you on not widely used in Az as Az is not yet an issue state. South Dakota comes on line this year and I think Texas in 2024. I think if it as just another fractional product that could be used for barter like constitutional silver. I just commented originally because it seemed the video was just about premium. It is important to know what it was intended for. As I can sell my early ones back for more then I paid for them that makes me happy. You also briefly at the beginning mentioned the Silverback that was intended as a collectors item and not for stacking or using. As long as I can spend GB's for more then I buy them for I am happy.

Here's what I've read from posters. Women in California pays rent and buys groceries. Man in Arizona pays contractors in Goldbacks. Man bought his daughter a car with Goldbacks. Women in Florida says she will accept them at her business. An ACE hardware in Michigan accepts them and 23+ stores in Texas accept them. I've paid my lawn service in Goldbacks as well. Wherever you are, ask, "Will you take gold for that?" If they say yes, you're trading Goldbacks! So, carry your Goldbacks and show them around!

@@danielbbq Of course living in what of the issue states would be best.

​@@redshiftsyou are correct. It is easier in those states but there are plenty of people that have never heard of them even though I heard 3 radio commercials for them yesterday in Utah. My/our job is to change that. Carry some and show them around is my Motto

Agreed. If the premium was much smaller maybe. But it’s just too high.

They already do its callled crypto

There are 3 African countries, the Cook Islands, 4 states plus 10-12 more coming. Businesses in the UK and Asia that accept Goldbacks too. Hold your horses. Multiple billions will be using Goldbacks. Early adopters will be sitting pretty before long…

Over 1mm people have purchased them. I've sold over 100 at a profit just because people think they are cool.

@@SilverWingnut - and the government knows your every move.

Not really. Goldbacks are very fungible, which is not the case for coins or bars.

Fungible where? Among the tiny community of stackers who own them. Nowhere else. If you try fobbing these off on any normal person, they're going to ask what steampunk Monopoly set you got them from. Silver coins are incredibly fungible and have successfully addressed the fractional precious metal problem for about 5,000 years.

@@kenofken9458 But silver coins are heavy to carry around compared to goldbacks. The difference in weight can mean life and death when you have so many other things to have to carry with you. You want money to be as light as possible while still maintaining that fungibility and divisbility. And believe me, once there's a dollar collapse, everyone will be bartering and goldbacks will just be as valuable as silver coins. There's no need to limit yourself to just one form of money when they are all considered spendable money.

People managed with silver coins for thousands of years. Goldbacks also have a reputation for delicacy - damage from folding, de-lamination from dampness etc. Even for centuries before fiat, when money was metal based, people figured out very viable ways to avoid the nightmare logistics of transporting and guarding vast quantities of gold and silver - bills of exchange, promisory notes, other negotiable instruments etc. Those would all emerge again, because they worked. Goldbacks and most of the extreme forms of prepping are based on a scenario which, realistically, will not happen. We've had people telling us that an apocalypse was imminent for thousands of years. It has not happened. In the meantime, we have lots of challenges that have and will happen - inflation, recessions, job losses and lots of other personal financial challenges. The thousands of dollars people will spend buying make believe money that only benefits from the 0.0000001% probability event could have been used to prepare them for the real contingency events.

@@kenofken9458 There is nothing make believe about goldbacks. They are just gold inside a polymer film, so it's real money. You may not like the high premiums but it's not cheap to make them either. They use high end technology which is vacuum deposition to deposit a precise amount of gold sandwiched between polymers. And the equipment used to make these goldbacks are million dollar investments, so don't expect to pay lower premiums for them. As for damage, you should keep them in a wallet. They sell one for $25. It's high quality leather that is made to protect your goldbacks. I bought one to stash as much goldbacks as I can. Of course, they advise you not to bend them, so that's why you keep it in a special wallet that they designed for goldbacks. Speaking of transporting large amounts of gold and silver, name one example of what the ancient cultures would use because I don't see a way out on this issue. This is one of the main reasons why I support goldbacks. The weight factor is a big issue because every ounce matters when you are the guy who has to carry it in a bugout scenario. You can have some silver, but not very much. Silver is quite heavy to carry and I would not want to carry it if I had to leave my home behind. But with goldbacks, I can carry a lot more of it for the same amount of weight in silver. And that's because there's very little gold in goldbacks yet its even more divisible than even a silver coin. Probably as divisible as junk silver or constitutional silver. But in a much lighter package. I say that goldbacks are the winner in terms of divisibility, fungibility and weight combined. It's the best form factor of money that can be precisely divisible, yet lighter to have around than silver.

I disagree. Goldbacks are very fungible, which is not the case for coins or bars.

@@BrilloHead you’re more than welcome to disagree, but that doesn’t mean you are right.

@@thinkforyourself9311 I don't see how I'm wrong. Let's say you want to buy something that is less than $30 in value, goldbacks makes that purchase much easier than gold coins or gold bars. Even silver coins are not as convenient to break in half or in quarters if you want to spend in lower denominations.

You don't need to break silver coins in pieces for fractional values. Mercury dimes serve the role just fine.

@@kenofken9458 So are goldbacks. Fractional gold have high premiums too.

I’m done with them myself.

@@ScottsdaleStacker - LOL, good

Lol I’m going to be trading mine in. Needed them for the video 😂

Hi Bullion Breakdown! Yes, I don't see the value in them, they do have beautiful designs though! They would probably do better as a collectible! BTW... I've subscribed to your channel! 😎

@@LegacyStacker agreed re: design.... fair point!!

Money, Please Forgive Me, You've Been Replaced! - The Goldback There’s a new money out there. It is 24k gold that you can carry with you wherever you go. It’s stronger than the dollar, which has been losing value as fast as they are being printed. You know, look at the price of gas, eggs, even housing. The dollar is weakening daily. The Goldback, on the other hand, has increased in value as the demand continues to rise. The goldback is the most important thing to happen to money in 6,000 years. It seems incredible that you can own gold for as little as $4.04. But it’s true. Even better, if you join the UPMA, United Precious Metals Association, you can buy Goldbacks for a 9.1% discount. Combined with the deflating dollar and your money is now worth 25% more. The Goldback, gold you can hold. Gold you can spend. Gold you can give. Gold you can use. Can you see yourself asking, “Will you take gold for that?” We can. The Goldback. The truth will set you free.

LOL - Good. The world needs followers of P T Barnum for the comedy they are stuck in.