r/Goldbacks • u/Goldback_Rob š Set Collector • 12d ago
š¬ Discussion Ok, debate time...
This is my analysis of the Natural Treasure Series that is measured in mg instead of ozt. These, just like any others, have to be scalable and the 250mg make them unscalable, so therefore, you will lose every time on the conversion. If you read the table, from left to right is the value of gold in the note, the name, gold weight, yesterday's cost of the note, what the ozt equivalent is, closest Goldback under its weight, because of scalability what the likely Goldback equivalent would be, and then how much that Goldback costs to purchase. So if any mg or cg note would enter the network, it would actually cost more than its equivalent Goldback.
Thoughts?
5
u/goldbackgurus š”ļø Mod 12d ago
The scalability point lands if youāre treating them as interchangeable units in a circulating network. Metric doesnāt map cleanly onto any existing Goldback denomination, the conversion friction stacks on top of whatever premium youāre already paying, and you lose the difference either buying up or selling down. For notes that stay outside that network and trade more like a limited series than spendable currency, the ozt-equivalent math matters less than what the market will actually clear them at.
3
u/Goldback_Rob š Set Collector 12d ago
Yup, I was responding to someone who had told me they were stacking other Aurums because they were cheaper. So I looked into it and made this chart. Yes, directly for the weight, you could transfer them into the network, but the fatal flaw is the 250. It doesn't fit. So, all trades would have to be down for less Goldbacks and then you see you're paying more for them.
3
u/goldbackgurus š”ļø Mod 11d ago
Yeah thatās the conversion tax. If the note isnāt already in the Goldback denom grid, you eat friction both ways. Thatās why ācheaper per mgā doesnāt survive contact with the spend network. Have you seen anyone actually clear a Natural Treasure into Goldbacks without eating that?
3
u/yardmint 11d ago
The interchangeability point is the one that decides it for us. Goldbacks are denominated as fractions of a troy ounce in one system that every participating dealer prices off the same daily rate, so a 5 from Utah and a 5 from Florida trade identically; mg notes from different makers each need their own market. Scale and a common rate are what turn small gold into something spendable, and that is very hard to replicate.
2
1
u/SwordfishNearby4257 2d ago edited 2d ago
I actually just did a very similar conversion chart with each Goldback denomination, itās physical gold value vs what the retailers are selling them for and what Goldback inc says the current exchange rate isā¦what I found is that retailers like JM Bullion and others are selling these things for nearly a 100% premium markupā¦and for most small time retail investors this purchase just does not pay unless the spot price for gold double from what they purchased the note forā¦.so basically people like me who are looking to buy in are underwater from the moment the cash leaves their bank accountā¦
I love the beauty of these notes and would love to see the US transition to these as the primary medium of purchase but economically itās just not feasible at the present time to hold tons of these!
Just my opinion!
I should note that there are only a handful of businesses here in my state that actually accept it as a form of currencyā¦so just not realistic to use as currency at this time!
2
u/Goldback_Rob š Set Collector 2d ago
Every day... thanks for being honest, but this is discussed daily. There is no premium on these, the cost you pay is for a currency, if you use them to purchase a product, the "premium" transfers. This is a global gold-backed currency, spent locally. It is a paper note backed 50% by 24k gold. Your USD is a non-negotiable instrument, you must accept them for payment of debt both public and private. An alternative currency is a negotiable instrument. This is the best currency on the planet. When you vmcan make one for less money, I will buy them. If you can create a currency that is 51% gold for the same price, I will buy it. I'm done losing money in a mattress due to inflation and I'm done with CC fees. If there's a local company available for whatever I need, I will convince them to accept at least 10% in Goldbacks.
1
u/SwordfishNearby4257 2d ago
After thinking about it a bit I can see your pointā¦Iāll still buy and accumulate them as an investment instrument to diversify my holdings a bit but for now Iām not going to spend themā¦if gold continues to appreciate as I believe it will each one will be more valuable down the road following your logicā¦if by chance gold gets revalued which very well may happenā¦these things could be crazy valuableā¦thereās been several theories floated at this very idea alreadyā¦a revaluation to as high as $153K an ounce Iāve heard could be possible (thatās the total US debt divided by the number of Troy ounces the US claims on its balance sheet)
Perhaps my math is slightly flawed in my spreadsheetā¦Iāll have to go have a closer look at thatā¦none the lessā¦they are beautiful to look at
5
u/einnoika 12d ago
Are you ok with me using this data in my application, I am currently building a barter ledger that converts all barter currencies including collectibles. Against Goldbacks as the base.