Yes, the math is insane … it’s so good I should have paid more attention to it. (like you said – lots of zeros) Lots of room for insane adoption growth. That’s the key concept.
But I was busy and had to go, on top of being excited about the utility and tax benefits of Goldbacks now that the premium is lower – to a point it can more easily be recovered via appreciation – but also remembering given the cost of producing the lower denomination notes, this premium will not likely go down much (if at all?) from here.
Again, this means if gold goes up 100% from here … so will the cost of Goldbacks at the source.
I don’t know what they will trade for in public use, but I will assume it would be more than spot prices. (but could be lower than the cost initially – so they can be used as currency right away, but it would undoubtedly be better to wait for appreciation.)
In a few years this consideration will probably be a moot point.
Having a few on hand is likely not a bad idea just on this basis alone.
And then there are the tax benefits.
Calculate this one … if you sell an asset … pay the tax on it … you will have some currency to pay for something.
Let’s say you reinvest the after-tax proceeds into something else and do this all over again … and again … and again … forever to pay the parasites their taxes. (let’s call this ‘compound taxation’ – the opposite of compounding returns)
Thing is, unlike bullion … which must be converted into currency on an after-tax basis … you don’t have that worry with Goldbacks … as they are ready to use as legal currency in increasing jurisdictions / purchases. (and can be retained for appreciation)
Because you are always in gold of course.
So how much tax does that save you?
Go ahead and calculate that.
I will leave that for somebody else as I must go again.
Cheers all
PS I know constitutional silver is obviously an alternative, and should be acted upon on that basis, but sometimes you might need gold. Gotta go