Goldbacks as currency

[Alexx1401]

Here's a video of someone who did exactly that.

GOLDBACKS ... Can YOU Recover Gold From Them?

He's definitely on the Novelty Only side of the fence!

Looks like it makes a hell of a mess. What was left over I would have to guess would bring less than any gold coin to as someone would have to smelt out the crap left over.

 

[Bacchus]

If you want to use gold as money deliver a coin in small denominations $5, $10, $20, etc... DR

The current American Gold Eagle (AGE) bullion coin at nominal $5 denomination is 1/10 oz = $236.87 of gold at today's spot price.

The 1/10 oz AGE is 16.5mm diameter. A dime is 17.9mm.

A coin with $5 worth of gold would be very small, considering the coin with $236.87 of gold is smaller than a dime.

Without intending to, you've just reiterated one of the arguments FOR the Goldbacks: smaller denominations of gold.

 

[Bacchus]

Looks like it makes a hell of a mess. What was left over I would have to guess would bring less than any gold coin to as someone would have to smelt out the crap left over.

OR you could get one of these:

TOAUTO gold melting furnace

and melt your own gold. I saw a YouTube video where a pawn store owner buys old jewelry, both from in store purchases and from garage sale acquisitions, and then melts it down into a nugget using this device.

 

[Bacchus]

I spend way too much time watching YouTube!

 

[Bacchus]

A coin with $5 worth of gold would be very small, considering the coin with $236.87 of gold is smaller than a dime.

Hmmm. I've rethought that. I guess there is no reason the smaller denomination coins would have to be 22K gold like the existing American bullion. You could make the $5, $10, $20 coins the same size as the 1/10 oz coins (dime-sized), and then just adjust the percentage of gold in them.

Well, maybe there's a reason. You would have coins with 2%, 4%, and 8% gold instead of the 91.67% gold of the AGEs.

Of course, that wouldn't be any worse than 1 Greenback with 1/1000 oz of gold in it.

 

[MTpockets]

Beats carrying around....

....a crate of GOLDSCHALGER.

 

[Alexx1401]

Hmmm. I've rethought that. I guess there is no reason the smaller denomination coins would have to be 22K gold like the existing American bullion. You could make the $5, $10, $20 coins the same size as the 1/10 oz coins (dime-sized), and then just adjust the percentage of gold in them.

Well, maybe there's a reason. You would have coins with 2%, 4%, and 8% gold instead of the 91.67% gold of the AGEs.

Of course, that wouldn't be any worse than 1 Greenback with 1/1000 oz of gold in it.

If they wanted to make coins that would actually be worth something silver would seem far easier.

 

[Nosferatu]

Here's a video of someone who did exactly that.

GOLDBACKS ... Can YOU Recover Gold From Them?

He's definitely on the Novelty Only side of the fence!

That video needed more disclaimers. I can't decide if I should try it at home or not.

 

[CamoDeafie]

If they wanted to make coins that would actually be worth something silver would seem far easier.

Ya mean like the 71 billion ($71 billion face value) Sacagawea "gold" dollars thats copper cored clad with manganese brass and having 0% precious metals content?

 

[Bacchus]

If they wanted to make coins that would actually be worth something silver would seem far easier.

"Junk silver" is still available.

 

[gmerkt]

If you want to use gold as money deliver a coin in small denominations $5, $10, $20, etc...

Goldbacks and gold coins have one thing in common, that is, the smaller the denomination, the higher the premium. The smaller the pieces the nut has to be cracked into, the guys who do it want their share. In the case of US gold bullion coins, it's the US Treasury. The premium on a 1/10th of an oz. coin is terrible compared to a one oz. coin. I've bought some, but only as emergency pieces. That's were silver might come in more handily for fractions of a full oz. Although the ratio between silver and gold has gone beyond all reason in contemporary times, back when the US Gov't set the prices, a nominal one oz. gold coin was equivalent to a nominal 20 oz. of silver. 20 silver dollars, 40 silver half dollars, et al. Yes, there were US gold coins in denominations of less than $20, and there was no premium on them. That was a later evolution of capitalism.

Little known fact, paper currency issued by the US Gov't came about in 1861 as a way to create money to pay for the Civil War. Gold was still the standard. Prices or means of payment were stated for each. Meaning, there was a serious discount afforded to paper which fluctuated a lot during the war. These paper notes were not backed by gold or silver. That didn't occur until the 1870's when gold and Greenbacks reached a status of par.

There had been a previous attempt to circulate a US currency in 1775-6, but it quickly became worthless because of lack of backing and excessive issuance.