So I didn't know much about the Goldbacks that VK showed us the video of so I did some digging. Found a few videos of how they work when you want to spend them. The value is based on the daily value of gold in percentages. IE: 1 Goldback has 1/1000th worth of gold in it, so exchange rate is worth ~$3.98 or $4 or whatever the rate is that day. There are several videos out there so you can search for yourself. I found this one where this guy is using his Goldbacks instead of Fiat. Obviously Utah, Nevada, New Hampshire & Wyoming are now accepting them. Soon South Dakota will be too. It is explained that you can inquire to a business if they will accept them in your state if you don't live in one of these states. Anyway, I found this video, hope it helps understanding the Goldbacks which will keep or increase their value unlike the US dollar. I believe eventually all states (well most) will accept them.

https://www.youtube.com/watch?v=rk4OjsOCjFg

You are getting about $1.81 in gold, using today’s spot price ($1,817 troy ounce). They are making about $2 off of each goldback sold. Understandably they are running a business that is manufacturing and marketing these and they need to profit. Not mad at that.

According to their website you can trade 1000 goldbacks for a 1 ounce gold coin (exg: gold eagle). So let’s say you do this. Assume you paid $4 per goldback. Welp, You just spent $4K for a 1 ounce coin that has a spot price of $1,817.

Now we know, no exchanges sell at spot (not profitable) so with mark up a 1oz gold eagle coin is around $2K today. Even with a dealers mark up you will pay double the price if you were to exchange the goldbacks for a 1 oz gold eagle coin.

Screenshot source: Apmex