"The premiums on #goldbacks are too high!"

I wish I had a goldback for everytime I heard that :)

But are the premiums actually "too high?"

Goldback.com wrote an excellent article earlier this year that explained goldback premiums.

An excerpt:

We actually argue that Goldbacks are inexpensive for what they really are because the added utility value doesn’t go away, it appreciates too. Goldbacks can be bought and traded for around $4. If the concept of adding value to materials through labor is difficult to grasp then imagine trying to buy a new vehicle for melt value or a pencil for the direct fractional value of lumber and graphite per ton. (Pencils carry about a 10,000% premium)

A pencil has more utility per weight than a giant felled log. A car has more utility than a hunk of metal. A thousand individual goldbacks have far more utility than a single gold coin, especially if you ever plan to barter or trade with your metal. Who wouldn’t rather be able to trade a thousand times for small items vs. just once for something expensive? We aren’t even getting into the fact that Goldbacks have never been counterfeited, the same can’t be said for coins. Goldbacks cost more because they are worth more.

The market agrees. Commodity money in the form of Goldbacks is becoming quite popular as the Goldback has already proven to be more successful than any other local currency project in the history of the United States. At the time of writing there are an estimated 1,000,000 users of Goldbacks. It turns out that sound money is popular.

As far as we can tell, much of the opposition to Goldbacks really comes from two groups;

Bullion customers that have been taught for decades to buy gold as close to spot as possible. The Goldback is new and draws their skepticism.

Coin dealers that have been selling the same products for over forty years and aren’t interested in branching out. The Goldback is inherently threatening to them because they don’t understand it and they don’t want to lose customers. (They could apply to retail Goldbacks by emailing us at info@Goldback.com at any time)

It’s somewhat ironic that these two groups are opposed to an otherwise successful sound money project. This situation isn’t that bad though. As it stands, there simply haven’t been enough Goldbacks to meet market demand as it is, so this type of opposition is healthy even if it is somewhat misguided. We’ll win most of them over eventually. We’ve already had several dozen coins dealers begin selling Goldbacks that adamantly opposed them at first. In Wyoming every single coin dealer signed on to sell the Goldback before the Wyoming launch. Many ideas take time to digest and it’s no different for the Goldback.

Read it all here:

https://www.goldback.com/news/whats-in-store-for-goldback-premiums