Could Goldbacks Help Put the Power of Money Back in Local Hands?

Contributed by Alexander Harmon

As the cost of living continues to challenge families, businesses and communities, a growing group of Americans is asking an important question: What should money be based on, and who should control it?

One movement gaining attention is the use of Goldbacks, physical gold incorporated into spendable notes designed for everyday transactions. Goldbacks were launched in 2019 and have expanded into multiple state series, with thousands of businesses participating in the merchant network. Each denomination contains a measured amount of 24-karat gold, with a 1 Goldback containing 1/1,000 of a troy ounce of gold.

Now, a group of people is working toward something bigger than simply buying and selling Goldbacks. The goal is to build a full local supply chain, connecting consumers, merchants, farmers, manufacturers, service providers, precious-metal dealers and financial institutions, including the development of community-focused “gold banks.” The idea is that communities should have more ways to exchange value without relying entirely on a centralized monetary system.

Supporters believe this could help create a more resilient local economy. Instead of money constantly leaving the community or losing purchasing power through inflation, they argue that a gold-based medium of exchange can helppreserve value and encourage people to trade with one another using something tangible.

The Constitution is often cited in discussions about sound money. Article I, Section 10 states:

“No State shall…coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts.”

That language is frequently discussed by advocates of constitutional and precious-metal money. However, Goldbacks are not U.S. legal tender; they are generally used when both parties voluntarily agree to accept them. Whether Goldbacks ultimately become a major part of the American economy remains to be seen.

But the larger question is already here: Can local communities build parallel systems that preserve wealth, encourage local commerce and give ordinary people more choices about how they store and exchange value?  For those involved in this effort, Goldbacks represent more than a piece of gold. They represent an opportunity to rebuild economic relationships from the ground up, one business and one transaction at a time.

Interested in learning more or becoming involved in building the local supply chain? Contact Alex at (907) 707-9295 for more info and join the Facebook group Alaska Goldbacks.