Making the Case for the 100 Goldback: Utility Meets Tradition
Written by Jeremy Cordon, Founder & CEO of Goldback Inc.
The Florida Goldback series introduces exciting new denominations: the half, the two, and the one hundred. While the half and two denominations need little explanation—the half Goldback provides an accessible $2.70 price point, and the two fills the gap between the one ($5) and the five ($25)—the one hundred Goldback raises some interesting questions. With a gold content of one-tenth of an ounce, the one hundred Goldback enters a territory typically dominated by fractional gold coins. Why introduce such a high denomination? This article explores the case for the one hundred Goldback, considering its fungibility, historical relevance, and appreciation potential.
The Power of Fungible Denominations
The one hundred Goldback is not just a gold product—it’s designed to function as currency. Unlike a one-tenth ounce gold coin, which is generally held until sold for cash, the one hundred Goldback can be seamlessly exchanged for smaller denominations, such as:
2 Fifties
4 Twenty-fives
10 Tens
20 Fives
50 Twos
100 Ones
200 Halves
This interchangeability is key to making Goldbacks a successful currency. The one hundred Goldback is fungible with lower denominations, tying its value directly to its utility within the Goldback system. In contrast, a gold coin lacks this flexibility and serves a fundamentally different purpose
Check out this 1920s catalog to see how prices compare to today’s values.
Historical Relevance of High-Denomination Currency
The concept of high-denomination currency has a long history. In 1924, $20 gold pieces were roughly equivalent to one ounce of gold. A single Goldback in that era would have been worth about four wheat pennies—an amount that could buy meaningful goods at the time. In fact, even higher-value bills like the $100 and $500 denominations were widely used, and banks issued notes as high as $100,000 for internal transfers.
Looking back at the value of currency in 1924 provides a fascinating perspective on the one hundred Goldback. While today’s $100 bill has lost much of its value, the one hundred Goldback aligns with the historical need for higher denominations in a functioning economy. If anything, the case could be made for even larger Goldback denominations to reflect the value once held by physical currency.
Five-Year Appreciation
Critics might question the premium of the one hundred Goldback compared to a fractional gold coin. But let’s look at the numbers:
In 2019, two fifty Goldbacks cost $270, while a one-tenth ounce gold coin cost $180 (with spot gold at $1,460).
Today, the market value of those two fifty Goldbacks has doubled to about $540. However, on resale platforms like eBay, collectible demand has driven their price to around $700 each—making the pair worth $1,400.
By comparison, the one-tenth ounce gold coin has appreciated to around $330—an increase, but far less dramatic than the Goldbacks’ performance.
The one hundred Goldback, as the first-ever of its kind and part of the Alpha Florida series, carries both intrinsic and collectible value. Its potential for future appreciation mirrors the success of earlier high-denomination Goldbacks, making it an intriguing option for both users and collectors.
The Verdict
The one hundred Goldback is more than just a large denomination—it’s a bold step forward for Goldback currency. Its fungibility, alignment with historical currency norms, and proven appreciation potential make it a valuable addition to the Goldback series. Whether you’re considering it for practical use or as a collector’s item, the one hundred Goldback opens up new possibilities in the world of gold-backed money.
