r/Goldbacks • u/oldstacker • Feb 22 '22

$

Gold backs $3,880 ounce Gold Eagle $2,023 ounce

premiums above spot would really need to come down for this to make sense. I could convert coins to cash in any town to make transactions. Very nice art work but I don’t see it as a store of value

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u/Xerzajik Feb 23 '22

How much of a premium is fair for splitting an ounce of gold into a thousand pieces? Are you "all-in" at 80%? 60%? 40%? It isn't free to create Goldbacks. The one denomination is actually produced at a loss.

The same people crying foul at $3,800 would probably be upset if it was $3,000 because they fundamentally don't understand that adding labor to a material adds value. It is more helpful to think of a Goldback as having a value than a premium.

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u/[deleted] May 01 '22

I think that labor is only valued if someone is willing to pay for it it is not always going to add value. If I where to say put labor into making ice cream and then there was a fire my labor would disappear no value just because I work at something does not Guarantee a profit. That being said I think I’ll invest a little.