hey everyone welcome to bald guy money and I want to make it clear from the get-go that this is not a sponsored video because in this episode we are talking about these These are called goldbacks and they give you the cheapest option for exposure to real physical gold as you can see here starting around five dollars and in this video we are going to cover The Good the Bad and the Ugly when it comes to goldbacks and I am also going to tell you whether I think it makes sense to spend your hard-earned


money on them or if I think there are better Alternatives out there because in doing research for this video I found that almost all of your favorite Metals YouTubers out there have done a video on this interesting topic that said I feel they lacked the objectivity necessary to properly present what it is you're actually buying as always please leave a like if you think more people need to see this content I really appreciate all the support you've been giving me on this channel and I just want to say you're a


Force for good thank you very much for that so goldbacks were introduced to the market in 2019 and their selling point is just as it's shown here on their website to promote the use of inflation-proof currency to protect the spending power of families and individuals at any income level and that's a pretty noble goal that I am 100 on board with because we all know that the Fiat printing machine whether by Design or not benefits those who are closest to the printer now how they have achieved this goal is incredibly


interesting and impressive because I've spent a lot of time in my career outside of YouTube in printing houses and how they apply the gold to the bills is extremely clever first they take granulated gold and added two materials used in the printing process like inks then the gold infused inks are layered on the notes until the correct amount of gold is applied and finally it's sealed in a type of lamination process to protect the Integrity of the note and make sure that nobody can simply scrape the gold off


that's been applied to the note the final result is these five notes that they Market as an alternative to the US dollar to be exchanged at a recommended exchange rate versus the US dollar which you can find on their website with one gold back currently worth according to them three dollars and 88 cents and this is where goldbacks started to lose me a little bit because if we go back to the first image that I showed you can see that at the different prices per gold back if you go by the prescribed


exchange rate either you're getting shafted on purchasing power using the small one gold back denomination which you have to use a little more than five dollars to buy to get three dollars 88 cents in purchasing power or you are shafting the seller by playing a game of Arbitrage buying bigger notes for a lower price than they are being recognized for according to the website's prescribed exchange rate but that's okay because the idea of this product is to store wealth in a stable way over a long period of time so to


avoid this issue altogether let's assess the goldbacks value versus spot price because that's the fairest way I can think to do it and just before I show you this data I want to say that doing research for this video I found some YouTubers giving misleading figures with respect to the premiums you have to pay for these gold back notes I'm not going to name the channel but one channel in particular seemed to be doing sponsored videos and quoting a premium of 70 above spot price for these products when in


reality these hyper fractional banknotes with gold on them designed to replace the US dollar and protect your purchasing power start at a 223 premium above spot on appmix and appmx is actually one of the recommended places goldbacks refer you to on their website for purchase of their product and when you calculate the price per ounce you end up paying on a product like that well that comes to five thousand eight hundred dollars per ounce for this product and I know that the smaller the fractional piece is the higher the


premium is so let's take a look at their largest product the 50 gold back note which is 1 20th of an ounce of gold and that's about 1.55 grams for those of you who use the metric system and as you can see here those are going for about 170 dollars per note right now on apmex or when we calculate that based on weight terms 90 percent above spot at 3407 per ounce so not exactly the 70 premium that one particular YouTuber in the space was talking about on their Channel and if you take a look at the


bottom row here I have added the atmex price for a pre-owned one gram bar a product we know goes for a high premium just to illustrate how much cheaper it is than the gold backs in fact versus the 50 gold back note you can get 2 grams of pure gold at a lower price than they want to sell you 1.56 grams for but wait it gets worse because I found data on what dealers will actually purchase these gold backs back from you for and this is what that data looks like in the best scenario they will purchase it back


for about 20 percent less than what you paid which is like a dealer today offering you one thousand six hundred dollars for a gold one ounce coin when the spot price is one thousand eight hundred dollars per ounce and they sell them in the shop for two thousand dollars an ounce and that's not even mentioning the almost 50 percent you lose when trying to sell back the one gold back notes which cost five dollars 31 cents to buy but will be bought back by dealers for 2.92 cents now goldbacks are not all that bad with Christmas


right around the corner this could be a fantastic gift for a child or a grandchild in order to teach them a valuable lesson about what real money is what money has historically been and the importance of putting your fake Fiat money into real Assets in order to protect the value of it and the purchasing power of it over time but no matter what these paid YouTubers say in their videos on the topic of goldbacks this is not a great alternative to the US dollar it's an absolutely beautiful consumer product I admit that much these


notes are fantastically designed they look beautiful and I would say they are great pieces of art but except for buying a small denomination note as a gift as I said maybe for a child or a grandchild I would rather spend my hard-earned money on things like recognizable pieces pieces that are easy to sell and that I could take to any country and somebody would know what it is and would immediately offer me spot price for it and number two something that gives you the best bang for your buck so the


cheapest price per ounce while remembering the importance of Point number one which is something that you will be able to sell easily somewhere down the line and if you're looking for something really small and fractional because you're on a budget and want to gift somebody some gold I think those one gram bars are a much better alternative to buying gold backs it's as simple as that because if the market has a major need for small fractional gold pieces one day believe me there will be


no shortage of businesses that will crop up to help you convert the gold that you have and that you purchased at a reasonable price into smaller fractional denominations and remember there's always silver and I know a lot of you stack silver just for moments like that now if you like this video you can thank my viewer Canadian stacker who asked me to cover this topic with a super thanks on my ranking precious metals video and just a message to Canadian stacker I will be doing an updated ranking of


metals products very soon to close the loop on your request thank you for your support of this channel I sincerely appreciate it and please remember you can submit topics that you'd like me to discuss or questions you'd like me to answer in the comments section of this video in every video I do I promise to answer at least one question or cover one topic that a viewer has requested that's my commitment to you all as a way to say thanks for supporting my channel thank you again for watching I wish you


all a great day ahead I hope to see you in the next one but until then take care of yourselves and take care of others bye