Which States Accept Goldbacks?

goldbacks

Posted - October 27, 2023

Goldbacks are one of the most unique bullion products available on the Hero Bullion website. We sell a wide variety of gold coins and bars from around the world, but there’s nothing quite like the Goldback. Each Goldback resembles a traditional bank note and features beautiful obverse and reverse designs. The catch? They contain actual pure gold bullion.

This means that Goldback values are pegged directly to the current spot price of gold bullion. Goldbacks are also marked up with a premium, which adds to their value. This means that you won’t exactly be able to buy a Goldback note for just its melt value.

Still, Goldbacks are one of the first attempts at establishing an actual gold-backed currency in the modern era. But how do you spend goldbacks? Goldbacks can be spent in five main U.S. states. Because Goldbacks are a voluntary currency, businesses decide for themselves whether or not they want to accept the alternative form of payment for their goods and services.

What are Goldbacks?

Goldbacks are a family of voluntary currencies used in several U.S. states. When we say voluntary currency, we mean that the Goldback is not legal tender. When a currency is legal tender, this means that the government officially backs it as a form of payment. Of course, businesses are free to set their own rules and guidelines for what forms of payment they accept. But because legal tender is backed by a sovereign government, it is the prevailing currency of choice for businesses.

Goldbacks are not a legal currency. They’re considered a family of voluntary currencies, meaning that businesses might choose to accept them.

History of the Goldback Currency

The Goldback business began after the 2011 Utah Legal Tender Act. This law made it possible for the government to adopt gold-backed currencies as legal tender. Note that the law does not make it mandatory for any businesses to accept gold as payment for their goods and services.

Goldbacks were initially intended as a project to explore the possibility of a gold-backed trading currency. Once upon a time, the United States actually backed all of its paper currency (United States Dollar) with actual gold bars and coins. This meant that every dollar you spent was supported by physical gold in the United States’ vault.

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This was called the Gold Standard. But the system of backing currency with gold officially ended in 1973 after decades of U.S. officials slowly selling off the country’s gold stockpile.

Goldback Gold Content

Goldbacks do contain actual gold. Gold content for each Goldback depends on its denomination. The 1 Goldback note contains 1/1000 oz of pure gold bullion. The 5 denominations contain five times this amount, the 10 is minted with 10 times the amount… you get the picture.

Five states currently have businesses that accept Goldbacks as currency: Wyoming, New Hampshire, Nevada, South Dakota, and Utah. Utah was actually the first state given its own line of Goldback notes. Since then, popularity led to the adoption of Goldbacks for Wyoming, New Hampshire, Nevada, and now South Dakota.

How to Use Goldbacks

You can use Goldbacks just like you’d use any other currency. Most companies that accept Goldbacks use a sorting machine to verify the weight and authenticity of Goldbacks used at the business. To use Goldbacks at a business near you, look up their requirements and rules. Some businesses in Utah and other states that accept Goldbacks might only accept them for certain items and services.

How Much is a Goldback Worth?

Goldbacks are worth more than just their spot price in gold. Like all gold products, they’re sold with a small premium to help cover distribution, manufacturing, and promotional costs. When you go to sell Goldbacks, you’ll also receive more money than the gold inside them is worth.

To sell Goldbacks, you have a couple options. Some traders prefer to use their Goldbacks for transactions. If you’re a supporter of the Gold Standard, using Goldbacks for actual sales is a good way to show your support of the age-old system of monetary backing.

Otherwise, you can always sell your Goldbacks directly to an authorized bullion dealer. Hero Bullion offers competitive rates for people looking to sell Goldbacks, and we’d be happy to support you on your stacking journey.

Are Goldbacks Legal Currency?

Goldbacks are not yet considered legal currency. Some people falsely believe that Goldbacks are legal currency because of the Utah Legal Tender Act. This act did make it legal for the state of Utah to potentially adopt Goldbacks as a legal currency, but the government hasn’t yet made that choice.

For now, most experts consider Goldbacks a local voluntary currency. Goldbacks are used for trade in five main states, and we anticipate that the Goldback movement might expand to include more U.S. regions in the near future.

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The movement is still going strong, and you’ll likely find several qualifying businesses that accept Goldbacks as payment throughout the country.

Final Thoughts: Which States Accept Goldbacks?

Goldbacks are accepted by businesses in five main states: New Hampshire, Utah, South Dakota, Nevada, and Wyoming. These states don’t call Goldbacks a legal currency, so they aren’t backed by any actual governments. Still, you can buy Goldbacks with imagery that celebrates each one of these states, and Goldbacks can be used at hundreds of businesses across the United States.

Do you still have questions about how to use Goldbacks or which states accept Goldbacks? Our customer service team would be happy to help you learn more about one of the most interesting modern gold products.