Goldbacks represent a modern revival of the concept of “specie,” which is money with intrinsic, tangible value, directly tied to its metal content. Unlike the paper bills most of us use today, which are little more than promises from a government, Goldbacks are physical notes containing precise amounts of 24-karat gold, making them a true store of wealth. These innovative bills are made by encasing ultra-thin layers of pure gold in durable polymer for protection, making them both flexible and resilient, practical for everyday transactions without sacrificing the enduring value of precious metals.

Goldbacks combine the stability of sound money with modern practicality. Each note contains a precise, fractional amount of .9999 fine gold, from 1/2000th to 1/10th of an ounce, produced using advanced vacuum deposition by Valaurum for consistent quality. Their intricate, state-specific designs, like Nevada’s Libertas as Eve, serve both as cultural tributes and advanced anti-counterfeiting features, including micro-printing and mirrored images, making them inherently secure. Though not U.S. legal tender, Goldbacks are accepted as legal currency in states like Utah, Nevada, New Hampshire, Wyoming, South Dakota, and Florida, with Utah formally recognizing them as legal tender under its 2011 Legal Tender Act, reflecting their real, spendable value.

The philosophy behind Goldbacks is rooted in the broader concept of sound money, the idea that money should have real, intrinsic value and not be subject to the whims of central banks or inflationary policies. Unlike fiat currency, which loses purchasing power over time due to inflation and the huge excesses in money printing, sound money like gold and silver maintains its value because of its physical scarcity and universal appeal. This is why the exchange rate for Goldbacks has roughly doubled since their introduction in 2019, reflecting the rising value of gold itself

For those concerned about the eroding value of the dollar, this kind of stability is crucial. For example, a $20 bill in 2000 had roughly the same purchasing power as $40 today, meaning that holding dollars over time has led to a significant loss of wealth. In contrast, the value of gold has more than quadrupled in the same period, maintaining purchasing power as the dollar weakened. Goldbacks capture this advantage in a form small enough to use for everyday purchases, and everyday savers, bridging the gap between bullion and conventional cash.

Goldbacks also have a silver counterpart, Silverbacks, which follow the same principle but are made with .999 fine silver. These notes provide another way for sound money advocates to preserve and use their wealth, particularly as silver often moves differently from gold in the marketplace, offering its own set of advantages as a monetary metal. While not as widespread as Goldbacks, Silverbacks are gaining traction among those who appreciate the practical and aesthetic appeal of holding tangible wealth.

This is why House Bill 1 (HB1), which I introduced on January 14, 2025, is so important for Alaska. HB1 would formally recognize gold and silver specie, including Goldbacks and Silverbacks, as legal tender in our state, eliminating local sales taxes on their exchange and removing a significant barrier to their use. This isn’t just about promoting a niche currency; it’s about restoring Alaskans’ financial independence and reinforcing our right to transact in real, tangible value. It’s about giving Alaskans a portable liquid asset to put in their home safe.

HB1 would allow Goldbacks to circulate freely in Alaska without the tax burdens that discourage their use, making us a leader in sound money reform. It’s a step toward financial sovereignty, allowing Alaskans to preserve their purchasing power and transact in a form of money that isn’t subject to the devaluation and political whims that plague our modern financial system.

With Alaska ranking third in the 2024 and 2025 Sound Money Index, we have an opportunity to set an example for the rest of the nation. If HB1 passes, it could pave the way for a uniquely Alaskan Goldback or Silverback series, perhaps featuring iconic local imagery like Denali or Chief Kowee, celebrating our rich cultural heritage while providing a practical, inflation-resistant form of money for our residents.

In a world where the value of the dollar is constantly being eroded, HB1 represents a critical step toward reclaiming our financial future and securing the long-term prosperity of Alaskans.

Originally published on Substack: https://kevinjmccabe.substack.com/p/storing-portable-value-in-alaska