Is Gold the New Green?

Goldbacks are one of the most modern forms of precious-metal currency. Distributed by Goldback, Inc., they are used in five states as a secondary currency, and several other states are considering adopting them for the same purpose. Goldbacks are printed using state-of-the-art presses and government-grade security features, using production methods and trade secrets that aren’t publicly disclosed. When the gold is deposited in the bill, it crystallizes and forms unique patterns that are hard to replicate. Also, each goldback has its own serial number, which helps to keep track of real goldbacks and uncover counterfeits. These bills are printed in several denominations: $0.50, $1, $2, $5, $10, $25, $50, and $100. They are made of high-quality 24kt gold, each with the amount of gold corresponding to the value of a $1 goldback note. I enjoy collecting goldbacks because of their fascinating designs, gold bullion investment value, and valiant attempt to bring back the gold standard.

History of Goldbacks

In 2011 Utah passed the Utah Legal Tender Act as an attempt to keep the value of the dollar from plummeting and causing a second Great Depression. This law enabled businesses to accept currencies made from gold bullion, removing sales tax and making them practical for everyday use. Goldbacks were first issued in 2019. 

At that point, they were only accepted in Utah. However, the new bullion currency has exploded in popularity, with many shops accepting goldbacks as payment. Today, Nevada, New Hampshire, Wyoming, South Dakota, Florida, and Oklahoma make and accept their own designs of goldbacks. Many say that goldbacks are the greatest currency in America because of their investment and collectable value. The gold increments in these bills are very small, making them affordable even for those with small investment budgets. Some goldbacks contain only 1/1,000 of a troy ounce of gold. That’s just $3 or $4 worth!

Creative Process

The minting process is unique compared to the production of normal paper bills. First, state officials must choose a design that represents their state. Once the design is approved, they send it to a company called Valaurum in Portland, Oregon. Valaurum prints the design onto long sheets of polymer and covers the bills with the proper amount of gold using advanced fifth-generation vacuum deposition technology before sandwiching the gold inside with another sheet of polymer. The result is a beautiful gold design mirrored on both sides of the bill. Every production run is carefully verified by X-ray depth measurement, fire evaluation of gold content, and additional third-party measurements. These precautions aim to completely erase any doubt regarding purity and quality.

Each state’s special design portrays a virtue in human form as well as a defining characteristic of the state, usually in the form of wildlife. For example, Utah’s lowest denomination ($1) displays Prudence in the form of a Native American woman, reflecting the rich cultural heritage, history, and influence of native communities in this arid region. Nevada portrays a young woman with a long, flowing robe and headscarf as the cardinal virtue Charity. The note also depicts a small bird as a subtle nod to the state’s vivid wildlife displays. 

Long-term Goals

The long-term goal of Goldback, Inc. is to promote the use of inflation-resistant currency and to allow everyone direct access to their rightful spending power. The gold-back program is an attempt to bring back the gold-standard currency system in which tangible bullion assets backed all paper cash and were easily obtained by simply going to a bank and exchanging paper money for the bullion assets that backed it. However, due to the innovative and non-government agency the Federal Reserve, we have lost this power, and taxes on purchases and transactions have risen, and, in some cases, entered our economy and law system.

One of the reasons gold bullion is helpful is because it allows us to buy usable and (in most states) nontaxable currency/investment dollars. This is the first time in history that we can buy small items with easily transported, accessible, bill-form gold. I own two goldbacks and believe they are great for collectors. In addition to being a smart investment, I find them very pleasing aesthetically. Even if goldbacks are not successful in bringing back the gold standard, they provide the numismatic community with a new and interesting collecting opportunity.