Subnostr

#Goldbacks are the most revolutionary form of #Gold the World has seen so far. It’s growth won’t be stopped.

#Goldback #Money #Currency

a source familiar with the matter 2y ago

For physical gold between 1mg and 0.5g I think the goldback is clearly the best (only?) option.

It's unclear to me whether silver can make a monetary comeback if it enjoys a free-market exchange rate to gold & we end fiat & fractional banking. If it does, that would reduce the need for minimal fractions of gold.

I think the 1/20 tz Goldback doesn't make much sense given that 1/10 tz coins & 1g combi-bar are available at such lower premiums. Do you imagine goldbacks circulating alongside higher-weight coinage? Or Goldback only?

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Discussion

captain ☦️ 2y ago

Why wouldn't silver make a comeback?

a source familiar with the matter 2y ago

Monetary competition pushes towards a single unit (which enjoys monetary premium).

Silver's role as the mechanism for small payments is jeopardized by goldbacks & digital transfers of gold.

LogicallyMinded 2y ago

I would agree that having a 1/20 tz #goldback by itself wouldn’t make much sense but #goldbacks are fungible like regular banknotes and divisible down to 1/1000 tz. Hence, having a large denomination like the 50 goldback makes sense.

I don’t think we can compare the premium of goldbacks with #gold coins because they have different use cases. Goldbacks are a lot more spendable that gold coins. They are meant to be used like banknotes. Besides the fact that gold coins aren’t as fractionable as goldbacks, you also need a sophisticated process to ensure that they aren’t counterfeited. Goldbacks comes with built-in anti-counterfeiter elements that can easily be verified.

I would expect the goldback premium to remain higher than the gold coins premium. I would also see as likely the possibility for the goldback premium to rise at a higher rate than the price of #gold (it has happened in the past).