Latest / Financial Survival Network / Gold Backs, The New Gold Currency -- Jeremy Cordon #5826

Transcript

Gold Backs, The New Gold Currency -- Jeremy Cordon #5826 · Financial Survival Network

0:00
So goldbacks by the numbers, they're the most successful local currency in American history
0:05
and only four years so they've been out since twenty nineteen. Between twenty nineteen
0:10
and the end of twenty twenty two, we sold about fifty million dollars worth
0:13
of gold backs. Now for twenty twenty three, we sold six million dollars
0:18
worth. Last month, you were listening to Carrie Letz's Financial Survival Network,
0:23
where you get valuable information you just can't find anywhere else to thrive in today's
0:28
trying times. You need the Financial Survival Network now more than ever. Go
0:34
to Financial Survival and Network dot com and get your free newsletter in gift Financial
0:39
Survival Network now more than ever, and welcome. You are listening to watching
0:49
the Financial Survival and Network. I'm your host, Carrie Letts. Well,
0:52
we're always looking for new innovations in the hard money precious metal space. We've
0:59
got one here for you now, and I'd like to know what your thoughts
1:03
are after you hear this interview with the Jeremy Cordon and the website is gold
1:11
Back Gooldback dot com. Tell me what your thoughts are about it. The
1:17
email address is kl at Kerry lads dot Com will afford them off to Jeremy.
1:22
Jeremy, it's great to have you on the show, so briefly tell
1:26
us what goldbacks is all about. The goldbacks are the most technologically advanced commodity
1:33
money in the entire world. What we've done is we've taken an ounce of
1:36
gold, We've split it into a thousand pieces and put it in a bill
1:41
like form that's never been counterfeited, so people can use gold just like cash.
1:47
So it's somehow it wrapped in a protective layer. Somehow. You can't
1:53
just print out, you know, or create a one thousandth of an ounce
1:57
piece of gold without having something around it has that work. So a lot
2:01
of people think a gold back is like a foil, you know, it's
2:05
coming out of some kind of roller, but it's not. It's it's vacuum
2:08
deposition. So we've got this chamber where you've got a fifty pound sheet of
2:13
gold getting hit by lasers and it's depositing atom by atom particles of gold on
2:19
a polymer, and then that gets in case with another polymer, making a
2:23
gold sandwich, I guess. And these things kind of look like, you
2:25
know, Willy Wonka tickets, you know, for lack of a better visual,
2:30
and you know, the process being as high tech as it is,
2:34
you know, normally as technology is just used for you know, diabetic test
2:38
rips or microchips in your phone or your car or your laptop. This is
2:43
the only Bullion product that uses this process for being created. And that's part
2:47
of what makes it so difficult to counterfeit. Okay, is there like some
2:52
kind of the protective identification blockchain or holograph for something on it? How do
2:59
I know it's real? So it does have six different security features on there.
3:02
You have non repeating patterns on the front for five different security features,
3:07
and then the back is a perfect negative image of the front including the serial
3:10
number. See that, which makes them insanely difficult to counterfeit. And you
3:16
know, I say insanely difficult. It's it'd probably be too ambitious to say
3:21
impossible, but nobody has ever done it, you know, and probably because
3:24
it would cost ten million dollars for the equipment and it'd take them, you
3:28
know, ten years to figure out. And then you're counterfeiting something that's worth
3:30
you know, four bucks. Yeah, but the twentieth of announce is worth
3:36
roughly one hundred bucks, right, that's worth So the twentieth of announced the
3:39
fifty gold back. You can change it in for fifty of the small ones,
3:45
which makes this fifty really special. And you know they run closer to
3:49
two hundred bucks, I'd probably be more desirable to counterfeit. But again,
3:54
where we're at with the technology, it's never happened yet. I think we're
3:58
about ten years ahead of counterfeiters, which gives us ten years to add even
4:00
more security features as we go. All right, but I've got another security
4:04
feature I'll talk to you about after this show, that one hundred percent impossible
4:10
to counterfeit. I'd love to hear about it. Yeah, it's a guest
4:15
I had on the show. We'll talk about it afterwards. In the meantime,
4:17
what is one of these things cost? So a gold back runs about
4:20
four bucks, that's what you can spend it for. So you're looking at
4:26
you know, about one hundred percent over melt. But you know, for
4:30
going that small one one thousandth of an ounce, it used to cost six
4:34
or seven hundred percent over mels. So we've really gotten the process down to
4:40
where it's very affordable. All right, So I can, so it's worth
4:46
four bucks. Who's going to give me four dollars for it? About fifty
4:49
percent of small business owners, you know. And that's where people in the
4:54
precious metal space tend to have a hard time with gold backs. But you
4:59
got to realize, this is the one hundred dollar bills in your wallet.
5:00
How much gold is in most none? None? But what do your use?
5:05
Do you use gold coins or one hundred dollar bills? Well? I
5:09
think everybody uses on hundred dollar bills, you know. And the reason why
5:14
is because they have utility. You know, they have utility. If you
5:16
know that somebody else will accept it, that's good enough. And the big
5:19
surprise of gold backs is that half a small business owners want to take them
5:24
as payment, because why wouldn't want They want to take a currency that's for
5:28
a money that's never lost to inflation. So in this case, I wouldn't
5:31
call it a premium. I'd call it to signorage, right, Like what
5:38
value? Right? Yeah, it's a value. It's it's a different way
5:41
to think about it. Completely. Nobody's melting down gold backs to recover a
5:45
gold That would be a very foolish way to buy gold for the melt value
5:50
but again, you know, people are using these as money, not you
5:54
know, as a bulk way of buying precious metals. All right, So
5:58
if I've got a million dollars worth of your gold backs, which is the
6:01
equivalent of five hundred thousand dollars worth of their metal content, and the dollar
6:08
becomes worthless, then people are going to watch these things. Huh. Well,
6:13
yeah, we've already seen it, you know. So like when COVID
6:15
hit, you know, about two weeks in, that's when you know,
6:18
normal people started getting really scared. You know, I remember going to the
6:21
classgow and there's kind of this atmosphere fear in the air. You know,
6:27
people are buying toilet paper and everything they could get their hands on because one
6:30
and they're worried they're gonna have to go without, you know, if they
6:32
didn't hurry. And two there's kind of this underlying fear that maybe the currency
6:36
wouldn't keep its value right, maybe the dollar wouldn't buy things later. And
6:40
when that happened, every single gold back that was available anywhere through any of
6:45
our dealers sold out, you know, all of them were bought up.
6:47
The only place that you could buy a gold back was on eBay. You
6:50
know how much they costed. How much here to gas. I can't even
6:55
imagine they were selling for fifty dollars a piece. Because here's the thing.
6:59
All that demand one hundred dollar bills, all that demand is based off the
7:02
demand for having a money that has utility and works. And when that's threatened,
7:08
when one hundred dollar bill becomes a threatened product, when people are scared
7:12
that that utility might not be there, they race to the next best thing.
7:15
You know. It's like, I don't think there are many people out
7:18
there they're saying that a two thousand dollars gold coin is going to be the
7:23
standard unit of money. But you know, if you have a four dollar
7:26
gold back, you know, and you can buy your coffee with that,
7:29
that's a very different value proposition. And I think that's why people were so
7:32
desperate to get goldbacks, because they wanted something that would actually were bit in
7:35
their wallet and be convenient, you know. And that's why we're seeing people
7:39
come in and you know, they're taking these gold coins that they own for
7:43
justin case, like a justin case scenario, and they're training them for goldbacks
7:46
because that's a better goal to own in a justin case scenario. In fact,
7:49
there's people that are using them and spending them all over the country today.
7:54
How many of these are in circulation now? So goldbacks, by the
7:59
numbers, they're the most successful local currency in American history in only four years.
8:03
So they've been out since twenty nineteen. Between twenty nineteen and the end
8:07
of twenty twenty two, we sold about fifty million dollars worth of gold backs.
8:11
Now for twenty twenty three, we sold six million dollars worth last month.
8:16
Wow, in six million dollars a month before that. So we're really
8:18
seeing kind of this exponential growth in interest in gold backs. As you know,
8:24
the banks are having these issues, you know, as the as the
8:28
dollar looks more precarious, you know, people are looking to you know,
8:31
other ways to use money. Okay, well it's a fascinating thing. So
8:39
so demand for these things is going up. And I'm just wondered, is
8:46
the government said anything to you about this, you were like infringing. I
8:50
mean, it's no different than a cryptocurrency basically, when you get down to
8:54
it, other than it's physical reality. No, it's it's it's it's very
8:58
different from a cryptocurrency, extremely different Um, you know, well, okay,
9:03
I'd say that they're both in a similar genre in that they're alternatives to
9:07
the dollar, right, people, people might buy those and transact with them
9:11
instead of dollars and that and that way they're similar. Um, you know,
9:13
crypto has the advantage of being able to spend it across the country,
9:16
right, you know, I could pay somebody's you know, bitcoin wallet in
9:20
New York from you know, San Francisco or you know. That'd be harder,
9:22
Yeah, that'd be harder. With the gold back. The gold back
9:24
is a lot more like cash. It's private, so there's not it's not
9:28
logged in some blockchain to be seen by anybody forever. You know, it's
9:33
not you know, something that exists within a forty digit halsword on a forty
9:37
digit wallet and you can never forget either of those two numbers, or you
9:41
know, it's gone. I've got I've got thirty thousand dollars in crypto that
9:46
I can't access because I don't have the password. Yeah that's it, you
9:50
know. So it's like I got seven thousand, So I'm almost their point.
9:54
Yeah, you're you're there with me. And also, I was so
9:58
happy when it went down from sixty seven thousand, because then my loss was
10:01
a lot less, you know, right, yeah, you feel a little
10:05
bit better about it, you know, you know how that is. And
10:07
that's again gold backs it's a lot more like cash. You know, I
10:11
hand it to somebody, they see it, they want it, and it's
10:13
over. And you know, only people that know about the transaction are the
10:16
people that we tell about it. All right, it's just like cash in
10:18
twenty nineteen, what were you selling? Uh, the smallest one for how
10:24
much? Two dollars? So? So now or do you buy them back
10:28
at all? Yeah? Oh, there's a strong market. I mean,
10:31
so you know, our best dealers for gold backs, they they'll put like
10:35
a five percent of spread on them, which is a tighter spread than you
10:37
can even get on silver. Sure, all right, so they'll buy them
10:41
back at for basically three eighty Yeah, if they saw them for four then
10:46
maybe buying them back from their customers for like three eighty. Oh well that's
10:50
interesting. So it is, So why does it why is it worth double
10:56
the mill the value? And I use it because that in the quotes,
11:01
sure, because that's what people accept it for. You know, So we've
11:05
got you know, we started setting up a merchant network because we knew this
11:07
would be one of the early questions with gold backs, like, well,
11:09
who would take it? You know, who would actually want this as money?
11:13
I was hoping that five to ten percent of business owners would go for
11:16
it and maybe find the libertarians and the preppers that have businesses that you know,
11:20
kind of get it and want to you know, accept gold as payment.
11:22
What astounded us is that it was closer to fifty percent of business owners
11:26
that we're willing to take goldbacks as payment. In fact, you know,
11:28
we've just we haven't even put a ton of effort into it. We've had
11:31
businesses approaching us saying, hey, we would prefer to take payment and gold
11:37
backs, and we'll advertise them. So in Utah, there are six businesses
11:41
that accept goldbacks for every one business that accepts a bitcoin. And we've got
11:45
a map and we map them out. And it's not just you know,
11:46
the lemonade stand. It's you know, contractors that build houses and car dealerships
11:50
and surgeons and chiropractors and grocery stores and gas stations and all the things that
11:58
you could imagine people are except goldbacks, and they have gold back excepting stickers
12:01
in their windows all over all over the place in Utah. As far as
12:07
you mentioned the legal thing, legally, goldbacks are very different from crypto.
12:11
So goldbacks are a bullion product with the secondary uses of local currency. But
12:16
goldbacks can technically be turned in and we'll give you a gold egal forum.
12:20
So it's tied into the Uniform Commercial Code for you know, the states,
12:26
in every state. And that's important because under federal law you can't really make
12:31
your own money unless otherwise authorized by state law. So what the gold back
12:35
is a series of local currencies that have a lot of barter ability use in
12:41
any stage under state law. So you said it comes under the Uniform Commercial
12:46
Code. You're talking to a recovering attorney here, So it is that because
12:50
it's negotiable bearer certificate or what is it exacting? Yeah, So if you
12:56
look at like a gift card or or a coupon, you know, a
13:00
lot of them will say, hey, you know you could this has a
13:01
cash value of a penny or something like that. Right, we'll have that
13:05
language on there. The government. They actually meant these coins that are fifty
13:11
dollars US minted one ounce gold coins. It's the gold eagle, right,
13:15
So that's what the government makes. What we say is if you have a
13:18
thousand gold backs of any denomination that ways an ounce of that ways an ounce,
13:22
we will give you a one ounce gold eagle or those gold backs.
13:26
And we make that promise on the gold back says this gold back contains one
13:31
twentieth of a troy ounce of gold exchangeable by gold back inc In US gold
13:35
coin to bear on demand. So you know, in order to prohibit gold
13:39
backs, you'd have to do it at the state level, and you'd have
13:41
to change every one of these fifty laws to outlaw gold backs, because again,
13:46
we operate off state law, and you'd have to change it for all
13:50
the coupons and all the gift cards and all the other groups that quote unquote
13:54
printing their own money. You know, it's it's like a gold certificate that's
13:58
made out of gold itself. That's that's how that's how the gold back is
14:01
legally structured, and I think that's why bureaucrats don't really want to mess with
14:05
it. You know, compared to crypto, you know, at fifty million,
14:09
seventy million dollars for the gold backs out there, it's too small to
14:11
really be super worth their attention. Now. I think we might get more
14:16
attention when we prospect a billion or two billion dollars mark. But you know,
14:20
so far, it's you know, it's been smooth sailing. That's really
14:22
cool. I gotta say, uh, I haven't really seen anything quite like
14:26
it. I've seen goldback cryptos that really haven't gone anywhere, and I've seen
14:33
gold black blockchain ownership that has not gone anywhere. This is kind of a
14:41
first for me. Well, you know what I used to do gold blockchain.
14:43
You know what I did before goldbacks is I had a company called Quintrick.
14:48
We split announce of gold into a thousand pieces and we tried to sell
14:50
those. And what I was told at events so over and over again was
14:54
something along the lines of if you don't hold it, you don't own it.
14:58
It's not that I don't try. I don't trust the government you're going
15:01
to vault all the gold for me and give me a token saying I own
15:05
a piece of it. I don't trust that if you hit a certain size,
15:07
the government won't roll through your vault wall with the tank sees all the
15:11
gold and make my tokens worthless. I don't trust the government if I don't
15:16
hold it and it's not mine. So you know, in doing gold backs,
15:18
you hold this, it's yours, it's in your wallet. All the
15:22
gold is with you, and you can transact with it and spend it,
15:26
and people are inclined to take it. People tend to want gold backs,
15:28
even people that aren't familiar with gold. And I've never owned gold before.
15:33
Seventy five percent of gold back owners have never owned gold before. We've added
15:37
three quarters of a million people to the gold market in just the past few
15:41
years. And although most of those people are young, they're between the ages
15:45
of twenty and forty. You know, we're educating an entire generation on sound
15:48
money as we go with gold backs. That's interesting that you're getting the younger
15:54
crowd in. If you tried this in any other countries, are they available
15:58
anywhere else the US? So goldbacks have been sold on every continent that I
16:03
know of except Frantarctica, and maybe now we're starting to see dealers in Australia
16:10
and in Europe, you know, starting to carry goldbacks. Our biggest problem
16:12
is manufacturing is a very high tech process, and while that protects people that
16:18
own gold backs, it makes it difficult to make enough of them. You
16:21
know, the reason why you probably haven't seen goldbacks, or why you know
16:25
some of your listeners haven't seen goldbacks, is because we have not spent the
16:29
money marketing gold backs. You know, I want to say that we've spent
16:32
under one hundred thousand dollars marketing goldbacks over the last five years. And the
16:36
reason why is people show each other, they're really excited about it, and
16:38
it's it's hard to keep them in stock as it is. All right,
16:41
well, you've got a product that people want and they're willing to pay double
16:45
what it's intrinsic value is, which is fascinating. Well, you know,
16:49
if if I were to make a one gold back, it costs so much
16:53
money to make this thing that it's actually manufactured at loss. I mean,
16:59
you got to figure if as soon as you meant a one ounce gold coin,
17:02
you know that costs fifty to one hundred dollars per unit, you go
17:04
down to a ten pounce coin, it's costing you about forty dollars and manufacturing
17:08
per unit. We got the manufacturing down on a gold back to about a
17:12
dollar, you know, and it's serialized, so we're really proud of those
17:15
costs. But you know, it's not like we're profiting one hundred percent on
17:19
this. You know, we can't make these things for free. It's it's
17:22
an expensive process. I can appreciate that. And so you're selling it for
17:29
four it costs you effectively three to make when you add in your cost and
17:33
the and the metal lost. So it's a little it's a little higher than
17:37
three. I might be most quoted at all, but it's a little over
17:42
a dollar, okay, a little more than a buck. Oh, I
17:45
find it intriguing so obviously, like when people buy the bigger ones, more
17:49
profit in the bigger ones, because I assume that a a fifty cost it
17:56
is much to make as a as a two. Am I right? No,
18:02
no, not at all, because you have to have fifty times as
18:03
much time in a vacuum deposition machine. You know, most of the cost
18:07
is that time in the machine, is not the actual lamination or the cutting.
18:11
You know, those are all done, you know, through a machine
18:14
process. But the difference might be if we made you know, a four
18:17
percent margin on the one, you know, maybe our margins ten percent on
18:21
the fifty. So you're right, it is more profitable through fifties. But
18:25
again it's not like it's not fifty times. It's not as rich as you
18:29
think. If if it was, I'd probably have an icer car twenty five
18:33
times the cost obviously to do it. But there is a higher cost involved.
18:37
Well, I find this fascinating. I'm going to check more into it
18:41
for sure, and they'll have you back on tell us how we connect with
18:45
you, where we find gold back and how we buy them. Sure,
18:49
yeah, goldbacks they're sold by all the big metals dealers. Now we're a
18:52
wholesaler, so you know JM. Bullion atmex So Money Metals. You can
18:56
go to goldback dot com and see a whole list to businesses that sell goldbacks.
19:00
There's about one hundred different retailers that sell goldbacks now, and then you
19:04
know several hundred coinstores. Um, you know you're probably going to get a
19:07
better deal online, so you can see kind of the different things that are
19:11
offered by you know, different retailers. Sure, but yeah, goldback dot
19:15
com. That's that's a good place to learn more. All right, Hey,
19:18
you've got a question for Jeremy or myself again. Email address kl at
19:22
carry Lutz dot com will get you an answer. There'll be a link to
19:26
Goldback in the show notes this interview on Financial Survival Network dot com. Make
19:32
sure you sign up for your free newsletter while you're there. Jeremy, really
19:36
interesting concept and we wish you the best. Thanks for having me, Thanks
19:41
for listening to Carrie Lutz's Financial Survival Network, your solution to today's trying times.
19:47
For the latest, go to Financial Survival Network dot com. Financial Survival
19:52
Network now more than ever nine