6 Goldback Myths Debunked: Separating Fact From Fiction

For centuries, gold has been one of the most trusted forms of money. Yet, misconceptions about gold—and Goldbacks—still exist. From claims that gold is too volatile to function as currency to doubts about Goldbacks’ legality, these myths can prevent people from seeing gold’s full potential. Let’s set the record straight and debunk some of the biggest misconceptions surrounding gold and Goldbacks.

Myth #1: "Goldbacks aren’t real gold."

The Truth: Every Goldback contains precisely measured 24-karat gold—permanently encased in layers of protective polymer. They also carry advanced security features, ensuring that each one holds real gold. They are not gold foil or gold plated.

Don’t just take our word for it—a third party melted down and tested Goldbacks themselves to verify their content. You can review those results here.

You can also take a Goldback to any reputable gold and silver exchange and have them test the exposed edge.

Myth #2: "Goldbacks are illegal."

The Truth: Goldbacks are completely legal. They function as a voluntary medium of exchange—just like cryptocurrencies or barter goods.

Goldbacks also may serve as a currency within certain jurisdictions where authorized by law. For example, they are considered specie legal tender in Utah.

Thousands of businesses across the U.S. accept Goldbacks for payment, and many states have precious metals-friendly laws that encourage using gold and silver as alternative money.

Myth #3: "Goldbacks are unnecessary because gold coins already exist."

The Truth: While gold coins are great for investment, they aren’t practical for small transactions.

Goldbacks solve this problem by offering precise, fractional gold amounts in spendable denominations as small as 1/2000th of an ounce. Unlike coins, Goldbacks are thin, lightweight, and easy to carry, making them a practical alternative for real-world use.

Myth #4: "There’s not enough gold in the world to support a gold-based system."

The Truth: Gold is far rarer than paper currency, but that’s a good thing—it prevents inflation and reckless money printing.

Every year, around 2,500–3,000 tonnes of gold are mined globally. That’s enough to create a functional gold-based economy, especially when used in a hyper-fractionalized form like Goldbacks.

Myth #5: "Gold is too volatile to be a reliable store of value."

The Truth: While gold prices fluctuate in the short term, history proves that gold is one of the most stable stores of value over time. Unlike paper currencies that steadily lose purchasing power due to inflation, gold has maintained its value for centuries.

Consider this: In 1924, a $20 gold coin could buy a high-quality men’s suit. Today, that same gold coin—worth over $2,000—can still buy a high-quality suit, while a $20 bill can barely cover lunch. Gold’s value isn’t volatile when measured over the long term—it’s the dollar that steadily declines.

Myth #6: "You lose money on Goldbacks because of their premium."

The Truth: While Goldbacks are valued at double the spot price of gold, you’re not losing that investment. When you use them in transactions and exchanges, that premium carries over to the next person.

Goldbacks are valued higher than raw gold because they have more utility than raw gold. Gold by itself can't be used as a circulating currency—it needs the anti-counterfeiting measures, the precise denominations, and the patented technology that makes it fractional and spendable.

Goldbacks aren’t just gold, they’re gold you can use.

Conclusion

Gold and Goldbacks are often misunderstood, but history proves their reliability. Gold has outlasted every currency ever created, and innovations like Goldbacks make it easier than ever to use gold in everyday life.

Don’t let myths keep you from exploring the potential of Goldbacks—a real gold currency built for the real world.