Why Goldbacks are Grossly Undervalued and Few People Know it.
If you check any Youtube video or Reddit post there’s guaranteed to be at least a few people howling in horror at Goldback premiums. After all, gold coins may carry a 5 - 10% premium. How is ~100% even palatable? It’s outlandish compared to what most of these people in the precious metals community are used to.
We’ve done a poor job explaining to people why our premium is actually ridiculously impossibly low. If we did a better job explaining then it wouldn’t be a low premium. Let me explain. This feels like a safe enough place to make this argument because this Newsroom only gets a couple hundred hits a day anyway . . . I’ll let you in on the secret.
Goldbacks have been selling out as fast we can make them for two years now. This has happened with very minimal advertising. Why? Because how many other inflation proof money systems are out there? The Goldback is unique and has advantages over all of the alternatives. What is Bitcoin worth if the power goes out? Do you really want a one ounce gold coin? What would you ever do with it? Even silver requires authentication and there’s a ton of fakes out there. Goldbacks would be king in a SHTF scenario hands down…
I’m getting off topic. When Goldbacks were first ‘discovered’ they became impossible to purchase because there weren’t enough on the market. Every dealer sold out and they were on Ebay for… $50. This could happen again and fairly easily. There aren’t enough Goldbacks for any serious marketing campaign. It is helpful that a lot of people think they are too expensive. The ones that believe in the project and buying out everything.
Goldbacks are expensive to make. The ‘1’ denomination is actually produced at a loss. How many gold products are produced at a loss? What are they even expensive compared to in the hyper-fractional gold world? Nothing else is that small. If you do go super small then 600% is normal. Not 100%. Goldbacks are being given away for free basically at this point.
About $1,000,000 worth of Goldbacks are produced monthly. The process requires $10,000,000 in machinery. It takes over a year to set up another machine. Goldbacks can’t scale very quickly which makes them scarce. Even the new production is looking like $6,000,000 per month max. We already have whales that want to buy most of this year’s production.
It is likely that Goldback values (it’s supply and demand stupid) will climb to a ~200% premium and stay there before the end of the year. It will surprise some people. Not everyone though. It’s a currency before it is a gold product even. At least in some places.
Goldbacks are the only amazing life raft on the Titanic in my view. You want to fill that raft but not overfill it. We are doing our best. It’s actually encouraging that not a lot of people really get it yet.