So goldbacks by the numbers, they're the most successful local currency in American history
and only four years so they've been out since twenty nineteen. Between twenty nineteen
and the end of twenty twenty two, we sold about fifty million dollars worth
of gold backs. Now for twenty twenty three, we sold six million dollars
worth. Last month, you were listening to Carrie Letz's Financial Survival Network,
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to Financial Survival and Network dot com and get your free newsletter in gift Financial
Survival Network now more than ever, and welcome. You are listening to watching
the Financial Survival and Network. I'm your host, Carrie Letts. Well,
we're always looking for new innovations in the hard money precious metal space. We've
got one here for you now, and I'd like to know what your thoughts
are after you hear this interview with the Jeremy Cordon and the website is gold
Back Gooldback dot com. Tell me what your thoughts are about it. The
email address is kl at Kerry lads dot Com will afford them off to Jeremy.
Jeremy, it's great to have you on the show, so briefly tell
us what goldbacks is all about. The goldbacks are the most technologically advanced commodity
money in the entire world. What we've done is we've taken an ounce of
gold, We've split it into a thousand pieces and put it in a bill
like form that's never been counterfeited, so people can use gold just like cash.
So it's somehow it wrapped in a protective layer. Somehow. You can't
just print out, you know, or create a one thousandth of an ounce
piece of gold without having something around it has that work. So a lot
of people think a gold back is like a foil, you know, it's
coming out of some kind of roller, but it's not. It's it's vacuum
deposition. So we've got this chamber where you've got a fifty pound sheet of
gold getting hit by lasers and it's depositing atom by atom particles of gold on
a polymer, and then that gets in case with another polymer, making a
gold sandwich, I guess. And these things kind of look like, you
know, Willy Wonka tickets, you know, for lack of a better visual,
and you know, the process being as high tech as it is,
you know, normally as technology is just used for you know, diabetic test
rips or microchips in your phone or your car or your laptop. This is
the only Bullion product that uses this process for being created. And that's part
of what makes it so difficult to counterfeit. Okay, is there like some
kind of the protective identification blockchain or holograph for something on it? How do
I know it's real? So it does have six different security features on there.
You have non repeating patterns on the front for five different security features,
and then the back is a perfect negative image of the front including the serial
number. See that, which makes them insanely difficult to counterfeit. And you
know, I say insanely difficult. It's it'd probably be too ambitious to say
impossible, but nobody has ever done it, you know, and probably because
it would cost ten million dollars for the equipment and it'd take them, you
know, ten years to figure out. And then you're counterfeiting something that's worth
you know, four bucks. Yeah, but the twentieth of announce is worth
roughly one hundred bucks, right, that's worth So the twentieth of announced the
fifty gold back. You can change it in for fifty of the small ones,
which makes this fifty really special. And you know they run closer to
two hundred bucks, I'd probably be more desirable to counterfeit. But again,
where we're at with the technology, it's never happened yet. I think we're
about ten years ahead of counterfeiters, which gives us ten years to add even
more security features as we go. All right, but I've got another security
feature I'll talk to you about after this show, that one hundred percent impossible
to counterfeit. I'd love to hear about it. Yeah, it's a guest
I had on the show. We'll talk about it afterwards. In the meantime,
what is one of these things cost? So a gold back runs about
four bucks, that's what you can spend it for. So you're looking at
you know, about one hundred percent over melt. But you know, for
going that small one one thousandth of an ounce, it used to cost six
or seven hundred percent over mels. So we've really gotten the process down to
where it's very affordable. All right, So I can, so it's worth
four bucks. Who's going to give me four dollars for it? About fifty
percent of small business owners, you know. And that's where people in the
precious metal space tend to have a hard time with gold backs. But you
got to realize, this is the one hundred dollar bills in your wallet.
How much gold is in most none? None? But what do your use?
Do you use gold coins or one hundred dollar bills? Well? I
think everybody uses on hundred dollar bills, you know. And the reason why
is because they have utility. You know, they have utility. If you
know that somebody else will accept it, that's good enough. And the big
surprise of gold backs is that half a small business owners want to take them
as payment, because why wouldn't want They want to take a currency that's for
a money that's never lost to inflation. So in this case, I wouldn't
call it a premium. I'd call it to signorage, right, Like what
value? Right? Yeah, it's a value. It's it's a different way
to think about it. Completely. Nobody's melting down gold backs to recover a
gold That would be a very foolish way to buy gold for the melt value
but again, you know, people are using these as money, not you
know, as a bulk way of buying precious metals. All right, So
if I've got a million dollars worth of your gold backs, which is the
equivalent of five hundred thousand dollars worth of their metal content, and the dollar
becomes worthless, then people are going to watch these things. Huh. Well,
yeah, we've already seen it, you know. So like when COVID
hit, you know, about two weeks in, that's when you know,
normal people started getting really scared. You know, I remember going to the
classgow and there's kind of this atmosphere fear in the air. You know,
people are buying toilet paper and everything they could get their hands on because one
and they're worried they're gonna have to go without, you know, if they
didn't hurry. And two there's kind of this underlying fear that maybe the currency
wouldn't keep its value right, maybe the dollar wouldn't buy things later. And
when that happened, every single gold back that was available anywhere through any of
our dealers sold out, you know, all of them were bought up.
The only place that you could buy a gold back was on eBay. You
know how much they costed. How much here to gas. I can't even
imagine they were selling for fifty dollars a piece. Because here's the thing.
All that demand one hundred dollar bills, all that demand is based off the
demand for having a money that has utility and works. And when that's threatened,
when one hundred dollar bill becomes a threatened product, when people are scared
that that utility might not be there, they race to the next best thing.
You know. It's like, I don't think there are many people out
there they're saying that a two thousand dollars gold coin is going to be the
standard unit of money. But you know, if you have a four dollar
gold back, you know, and you can buy your coffee with that,
that's a very different value proposition. And I think that's why people were so
desperate to get goldbacks, because they wanted something that would actually were bit in
their wallet and be convenient, you know. And that's why we're seeing people
come in and you know, they're taking these gold coins that they own for
justin case, like a justin case scenario, and they're training them for goldbacks
because that's a better goal to own in a justin case scenario. In fact,
there's people that are using them and spending them all over the country today.
How many of these are in circulation now? So goldbacks, by the
numbers, they're the most successful local currency in American history in only four years.
So they've been out since twenty nineteen. Between twenty nineteen and the end
of twenty twenty two, we sold about fifty million dollars worth of gold backs.
Now for twenty twenty three, we sold six million dollars worth last month.
Wow, in six million dollars a month before that. So we're really
seeing kind of this exponential growth in interest in gold backs. As you know,
the banks are having these issues, you know, as the as the
dollar looks more precarious, you know, people are looking to you know,
other ways to use money. Okay, well it's a fascinating thing. So
so demand for these things is going up. And I'm just wondered, is
the government said anything to you about this, you were like infringing. I
mean, it's no different than a cryptocurrency basically, when you get down to
it, other than it's physical reality. No, it's it's it's it's very
different from a cryptocurrency, extremely different Um, you know, well, okay,
I'd say that they're both in a similar genre in that they're alternatives to
the dollar, right, people, people might buy those and transact with them
instead of dollars and that and that way they're similar. Um, you know,
crypto has the advantage of being able to spend it across the country,
right, you know, I could pay somebody's you know, bitcoin wallet in
New York from you know, San Francisco or you know. That'd be harder,
Yeah, that'd be harder. With the gold back. The gold back
is a lot more like cash. It's private, so there's not it's not
logged in some blockchain to be seen by anybody forever. You know, it's
not you know, something that exists within a forty digit halsword on a forty
digit wallet and you can never forget either of those two numbers, or you
know, it's gone. I've got I've got thirty thousand dollars in crypto that
I can't access because I don't have the password. Yeah that's it, you
know. So it's like I got seven thousand, So I'm almost their point.
Yeah, you're you're there with me. And also, I was so
happy when it went down from sixty seven thousand, because then my loss was
a lot less, you know, right, yeah, you feel a little
bit better about it, you know, you know how that is. And
that's again gold backs it's a lot more like cash. You know, I
hand it to somebody, they see it, they want it, and it's
over. And you know, only people that know about the transaction are the
people that we tell about it. All right, it's just like cash in
twenty nineteen, what were you selling? Uh, the smallest one for how
much? Two dollars? So? So now or do you buy them back
at all? Yeah? Oh, there's a strong market. I mean,
so you know, our best dealers for gold backs, they they'll put like
a five percent of spread on them, which is a tighter spread than you
can even get on silver. Sure, all right, so they'll buy them
back at for basically three eighty Yeah, if they saw them for four then
maybe buying them back from their customers for like three eighty. Oh well that's
interesting. So it is, So why does it why is it worth double
the mill the value? And I use it because that in the quotes,
sure, because that's what people accept it for. You know, So we've
got you know, we started setting up a merchant network because we knew this
would be one of the early questions with gold backs, like, well,
who would take it? You know, who would actually want this as money?
I was hoping that five to ten percent of business owners would go for
it and maybe find the libertarians and the preppers that have businesses that you know,
kind of get it and want to you know, accept gold as payment.
What astounded us is that it was closer to fifty percent of business owners
that we're willing to take goldbacks as payment. In fact, you know,
we've just we haven't even put a ton of effort into it. We've had
businesses approaching us saying, hey, we would prefer to take payment and gold
backs, and we'll advertise them. So in Utah, there are six businesses
that accept goldbacks for every one business that accepts a bitcoin. And we've got
a map and we map them out. And it's not just you know,
the lemonade stand. It's you know, contractors that build houses and car dealerships
and surgeons and chiropractors and grocery stores and gas stations and all the things that
you could imagine people are except goldbacks, and they have gold back excepting stickers
in their windows all over all over the place in Utah. As far as
you mentioned the legal thing, legally, goldbacks are very different from crypto.
So goldbacks are a bullion product with the secondary uses of local currency. But
goldbacks can technically be turned in and we'll give you a gold egal forum.
So it's tied into the Uniform Commercial Code for you know, the states,
in every state. And that's important because under federal law you can't really make
your own money unless otherwise authorized by state law. So what the gold back
is a series of local currencies that have a lot of barter ability use in
any stage under state law. So you said it comes under the Uniform Commercial
Code. You're talking to a recovering attorney here, So it is that because
it's negotiable bearer certificate or what is it exacting? Yeah, So if you
look at like a gift card or or a coupon, you know, a
lot of them will say, hey, you know you could this has a
cash value of a penny or something like that. Right, we'll have that
language on there. The government. They actually meant these coins that are fifty
dollars US minted one ounce gold coins. It's the gold eagle, right,
So that's what the government makes. What we say is if you have a
thousand gold backs of any denomination that ways an ounce of that ways an ounce,
we will give you a one ounce gold eagle or those gold backs.
And we make that promise on the gold back says this gold back contains one
twentieth of a troy ounce of gold exchangeable by gold back inc In US gold
coin to bear on demand. So you know, in order to prohibit gold
backs, you'd have to do it at the state level, and you'd have
to change every one of these fifty laws to outlaw gold backs, because again,
we operate off state law, and you'd have to change it for all
the coupons and all the gift cards and all the other groups that quote unquote
printing their own money. You know, it's it's like a gold certificate that's
made out of gold itself. That's that's how that's how the gold back is
legally structured, and I think that's why bureaucrats don't really want to mess with
it. You know, compared to crypto, you know, at fifty million,
seventy million dollars for the gold backs out there, it's too small to
really be super worth their attention. Now. I think we might get more
attention when we prospect a billion or two billion dollars mark. But you know,
so far, it's you know, it's been smooth sailing. That's really
cool. I gotta say, uh, I haven't really seen anything quite like
it. I've seen goldback cryptos that really haven't gone anywhere, and I've seen
gold black blockchain ownership that has not gone anywhere. This is kind of a
first for me. Well, you know what I used to do gold blockchain.
You know what I did before goldbacks is I had a company called Quintrick.
We split announce of gold into a thousand pieces and we tried to sell
those. And what I was told at events so over and over again was
something along the lines of if you don't hold it, you don't own it.
It's not that I don't try. I don't trust the government you're going
to vault all the gold for me and give me a token saying I own
a piece of it. I don't trust that if you hit a certain size,
the government won't roll through your vault wall with the tank sees all the
gold and make my tokens worthless. I don't trust the government if I don't
hold it and it's not mine. So you know, in doing gold backs,
you hold this, it's yours, it's in your wallet. All the
gold is with you, and you can transact with it and spend it,
and people are inclined to take it. People tend to want gold backs,
even people that aren't familiar with gold. And I've never owned gold before.
Seventy five percent of gold back owners have never owned gold before. We've added
three quarters of a million people to the gold market in just the past few
years. And although most of those people are young, they're between the ages
of twenty and forty. You know, we're educating an entire generation on sound
money as we go with gold backs. That's interesting that you're getting the younger
crowd in. If you tried this in any other countries, are they available
anywhere else the US? So goldbacks have been sold on every continent that I
know of except Frantarctica, and maybe now we're starting to see dealers in Australia
and in Europe, you know, starting to carry goldbacks. Our biggest problem
is manufacturing is a very high tech process, and while that protects people that
own gold backs, it makes it difficult to make enough of them. You
know, the reason why you probably haven't seen goldbacks, or why you know
some of your listeners haven't seen goldbacks, is because we have not spent the
money marketing gold backs. You know, I want to say that we've spent
under one hundred thousand dollars marketing goldbacks over the last five years. And the
reason why is people show each other, they're really excited about it, and
it's it's hard to keep them in stock as it is. All right,
well, you've got a product that people want and they're willing to pay double
what it's intrinsic value is, which is fascinating. Well, you know,
if if I were to make a one gold back, it costs so much
money to make this thing that it's actually manufactured at loss. I mean,
you got to figure if as soon as you meant a one ounce gold coin,
you know that costs fifty to one hundred dollars per unit, you go
down to a ten pounce coin, it's costing you about forty dollars and manufacturing
per unit. We got the manufacturing down on a gold back to about a
dollar, you know, and it's serialized, so we're really proud of those
costs. But you know, it's not like we're profiting one hundred percent on
this. You know, we can't make these things for free. It's it's
an expensive process. I can appreciate that. And so you're selling it for
four it costs you effectively three to make when you add in your cost and
the and the metal lost. So it's a little it's a little higher than
three. I might be most quoted at all, but it's a little over
a dollar, okay, a little more than a buck. Oh, I
find it intriguing so obviously, like when people buy the bigger ones, more
profit in the bigger ones, because I assume that a a fifty cost it
is much to make as a as a two. Am I right? No,
no, not at all, because you have to have fifty times as
much time in a vacuum deposition machine. You know, most of the cost
is that time in the machine, is not the actual lamination or the cutting.
You know, those are all done, you know, through a machine
process. But the difference might be if we made you know, a four
percent margin on the one, you know, maybe our margins ten percent on
the fifty. So you're right, it is more profitable through fifties. But
again it's not like it's not fifty times. It's not as rich as you
think. If if it was, I'd probably have an icer car twenty five
times the cost obviously to do it. But there is a higher cost involved.
Well, I find this fascinating. I'm going to check more into it
for sure, and they'll have you back on tell us how we connect with
you, where we find gold back and how we buy them. Sure,
yeah, goldbacks they're sold by all the big metals dealers. Now we're a
wholesaler, so you know JM. Bullion atmex So Money Metals. You can
go to goldback dot com and see a whole list to businesses that sell goldbacks.
There's about one hundred different retailers that sell goldbacks now, and then you
know several hundred coinstores. Um, you know you're probably going to get a
better deal online, so you can see kind of the different things that are
offered by you know, different retailers. Sure, but yeah, goldback dot
com. That's that's a good place to learn more. All right, Hey,
you've got a question for Jeremy or myself again. Email address kl at
carry Lutz dot com will get you an answer. There'll be a link to
Goldback in the show notes this interview on Financial Survival Network dot com. Make
sure you sign up for your free newsletter while you're there. Jeremy, really
interesting concept and we wish you the best. Thanks for having me, Thanks
for listening to Carrie Lutz's Financial Survival Network, your solution to today's trying times.
For the latest, go to Financial Survival Network dot com. Financial Survival
Network now more than ever nine