The Goldback Lease Program

The Goldback Lease Program is designed to give excellent and safe returns in an environment where everyone is being forced to compete with extremely cheap credit. The main investment is actually held in gold, the returns are also paid in gold on a monthly basis. Our lease program has grown from about $1.5 million in 2019 to $11 million in 2022. It protects Goldback Inc. from bank credit demands while allowing people to put their gold to work for them in a secure and meaningful way.

Before Goldbacks were first produced in 2019, we had a challenge. We learned that it would cost over one and a half million dollars to make all of the inventory necessary to lock in favorable production rates with our production company, to make the Goldback affordable. Once sold, this same one and a half million dollars worth of Goldbacks would then need to be reordered so that we could continue providing Goldbacks. We would never be able to spend this money on development. As Goldbacks became more popular we would need even more circulating inventory and capital.

As a new company, Goldback Inc. didn’t have that kind of money sitting around. Our solution was to work with our partners to borrow the gold in the form of gold leases. In exchange for the loan, we agreed to pay an annual return in gold. All of the leases are denominated in Goldbacks. Maximum return is 3.5%.

Goldback Leases are popular because, rather than paying vaulting fees, one can make a return on gold. This is attractive because the value of the loan increases as the price of gold rises. The entire lease is held in gold at all times and is insured against loss or theft. The gold is used for the creation of new Goldbacks which are then sold to retailers. Once sold, the Goldbacks are reordered with the same money, providing a rotating inventory. As the demand for Goldbacks continues to grow and production capacity increases, we are growing this program as well.