Advantages of Goldbacks vs. Silver Coins
We were recently asked what advantages if any the Goldback has over just a regular silver coin. This is an excellent question because on the face of it a silver coin can also be worth just a few dollars and be spent for a small amount of goods. While there are pros and cons to both as far as we can tell there are at least three advantages of the Goldback over silver:
There is a network of people that will accept the Goldback as payment. Sure, junk silver (or any silver) can be used as well but it is more difficult to get someone to accept it than the Goldback. This may be partially due to the unique beauty of a Goldback vs a small silver coin. People that aren’t accustomed to taking payment in precious metal so it is important to be able to bridge the gap.
You won't find counterfeit Goldbacks like you will with Silver Coins. A coin Is relatively easy to fake while a Goldback has never been counterfeited. The reason is because the technology is extremely sophisticated and difficult to replicate.
Goldbacks are interchangeable and carry the same premium. Each denomination of silver carries a different premium over spot so 100 1oz bars do not cost the same as one 100oz bar. Likewise, ten 1/10th oz coins do not equal one 1oz coin. The Goldback is designed to be used as a currency. With the exception of junk silver there isn’t an equivalent for silver.
With all that said, silver has been the standard precious metal for small transactions for thousands of years. It is new technology that is allowing gold to also participate in this space.