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u/AdditionalPizza7990

▲ 377 r/Goldback+1 crossposts

Gold coins are fine for tracking the price of gold but there's a serious upside to fractional gold that is rarely acknowledged here. If anything fractionals get a lot of disrespect.

In 2020 the 1/10th oz gold coins carried sometimes over a 100% retail premium. People were buying them because they were worried about the dollar and wanted something tradable. (This is part of what got me interested in gold)

Today, I can buy those same 1/10th oz coins for very close to spot. I think it is reasonable to believe that the same demand for fractionals will come back at some point.

By owning nothing but fractional I'm guaranteed at least spot prices but I have a huge upside that full coins don't have. There's no upside for full one ounce coins over fractional and this is the best time to trade them over. No one is thinking about the next bank run.

It's also easier to liquidate fractional gold. There are fewer reporting requirements. I don't even have to sell to a dealer. I could trade the gold directly.

This is a slightly riskier play and I know you guys are going to give me shit over it but I'm even putting some more into super fractional stuff like the new 1/4 and 1/2 Goldbacks. They get a lot of unearned hate here but these Goldbacks frequently sell for like $25 over their $8 retail price. I doubt Goldback will be able to keep up with demand the next time there's a bank failure, especially for their small stuff.

Anyway, that's why I'm swapping for fractional. Figured I'd share in case this helps anyone.

u/AdditionalPizza7990 — 6 days ago
▲ 10 r/Goldback+1 crossposts

Take this down if it is against the rules. I have no idea what the market is for this particular Goldback.

u/AdditionalPizza7990 — 8 days ago
▲ 2 r/Goldback

It would appear that the premium issue is a red herring. If Goldbacks had a lower premium then the haters would still dislike them because they aren't the coins and bars that they're used to. It's just easier to whine about the premium.

In the real world though people love Goldbacks. It's just a vocal group of old school bullion stackers that dislike them.

u/AdditionalPizza7990 — 8 days ago
▲ 3 r/Goldback

It seems like arbitrage is part of the business model for getting people to spend these.

Today the exchange rate is $9.28. That's the price that businesses will accept Goldbacks.

Goldbacks can be bought for under $9 on the retail market.

This means that any Goldbacks that I buy today instantly save me 4% if I'm spending them at a business that accepts the exchange rate. That's about twice as good as my credit card.

We paid for a roofing job a couple years back with Goldbacks and we saved at least 4%.

Is anyone else using Goldbacks to save money?

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u/AdditionalPizza7990 — 10 days ago