How Do Goldbacks Work? A Beginner’s Guide

Goldbacks are a local, gold-backed currency designed for everyday use. If you’re curious about how they work, how to get them, and how to spend them, this guide will answer your most common questions.

1. What are Goldbacks?

Goldbacks are spendable gold currency, made with small fractions of 24-karat gold.
They function like cash but hold intrinsic value due to the gold content. They have a daily exchange rate that reflects the current gold market.
Goldbacks come in eight interchangeable denominations. Each Goldback is assigned a face value (e.g., ½, 1, 2, 5, 10, 25, 50, 100) corresponding to the weight of gold inside.

2. How do I get Goldbacks?

Through distributors: Goldbacks are sold directly through our authorized distributors.
Claim one for free: You can get your first Goldback completely free at freegoldback.com.

3. How do I find places that accept Goldbacks?

On the app or website: Download the Goldback app or visit our merchant map to find Goldback-accepting businesses near you.
Ask locally: Small businesses in your area may be open to accepting Goldbacks, even if they have not officially joined the network.
Community groups: Join local Goldback networks or GILD chapters to discover new merchant locations.

4. How do I spend Goldbacks?

Select a business: Find a merchant that accepts Goldbacks.
Use the calculator: Convert the total to Goldbacks with the calculator on the app or website.
Pay with Goldbacks: Hand over the correct denominations. (Goldbacks can be used for partial or full payments.)
Receive change if needed: Merchants may provide change in smaller Goldback denominations, or cash if desired.

5. Can I mix Goldbacks with other forms of payment?

Yes. Goldbacks can be combined with cash, debit, or credit for partial payments as long as the merchant agrees.
Merchants often accommodate hybrid transactions for convenience.

6. Are Goldbacks legal to use?

Yes. Goldbacks are recognized as a local currency in participating states.
They are intended for voluntary exchange between willing parties.

7. How do I store and protect Goldbacks?

Keep them in a wallet designed for Goldbacks to prevent bending or wear.
Consider using protective sleeves, frames, or cases for larger collections.
Avoid moisture and extreme heat to maintain quality.

8. Can Goldbacks be verified for authenticity?

Yes. Goldbacks are equipped with several anti-counterfeiting features, including UV-reactive ink, serial numbers, and microprinting.
The UV Penlight can be used to detect the presence of UV-reactive ink.

9. Can I convert Goldbacks back into cash or gold?

Many distributors allow you to sell Goldbacks for cash.
The value may fluctuate slightly based on gold prices and market demand.
Limited Early Release or collectible editions may have added collector value.

10. Are there limitations on where I can use Goldbacks?

Any Goldback can be used anywhere they are accepted, no matter the state series.
Not all businesses accept them yet, so it’s important to check the merchant map or ask before attempting a purchase.

11. Why use Goldbacks instead of cash?

Preserves value: Goldbacks hold intrinsic gold value, protecting against inflation.
Supports local economies: Keeps currency circulating within local communities.
Portable and practical: Small denominations make gold easy to use for everyday transactions.

Conclusion

Goldbacks bridge the gap between precious metals and everyday currency, giving users a practical way to spend, collect, and invest in gold. Whether you’re shopping locally, supporting merchants, or building a collection, understanding how Goldbacks work ensures you can use them confidently and effectively.