In simple terms, Paxos Gold or PAXG, is a blockchain based digital asset backed by real gold reserves. Each PAXG token is fully backed by allocated LBMA-accredited London Good Delivery gold bars, stored in Brink’s vaults, one of the most secure bullion vaults in the world.
By purchasing PAXG, you hold ownership of the underlying physical gold (in corresponding ounces), held in custody by Paxos Trust Company, which is regulated by the New York State Department of Financial Services.
PAXG is also audited monthly by Withum, a top-ranking U.S. auditing firm, to attest the matching supply of PAXG tokens and underlying gold – making PAXG safe from the volatility usually associated with cryptomarkets.
Gold is historically attractive to investors during periods of high inflation and volatility
. For thousands of years, gold has endured as a store of value, playing a significant role in the global financial system. What makes gold so valuable? Gold is scarce.
It requires a great deal of effort to locate, mine, and refine gold. With a wide range of utilities, ranging from computer chips to luxury goods, gold has been universally regarded as precious by humans since the beginning.
Today, concerns over the stability of global financial markets are rising, as are concerns about geopolitical disruption and inflation. Gold is an increasingly appealing asset in the current environment due to its status as a battle tested, risk-off hedge against inflation in the face of mass uncertainty.
Gold is considered a tier-one asset by the world's sovereign nations and central banks, and is therefore one of the best forms of long-term wealth protection. In a world of elevated risks, disruption and uncertainty on multiple fronts, gold offers lower risk, greater safety, and bigger upside than other investments. - Charlie Karaboga, co-founder and CEO, Block Earner
Benefits of Paxos Gold (PAXG)
Paxos Gold removes the friction from buying, holding, and selling gold. PAXG was created to help investors gain access to the benefits of gold while reducing many of the disadvantages typically associated with the traditional physical gold investment process.
PAXG is an ERC-20 token on the Ethereum blockchain network that can be moved or traded anywhere in the world at any time. Meaning, anyone can now own a fraction of an LBMA-accredited London Good Delivery gold bar with low investment minimums and zero physical gold storage fees.
PAXG brings Gold to the Blockchain, explained by Paxos Trust Company
Demand for gold continues to rise due to the ongoing global economic downturn. At over AUD$880 million on July 1st, the PAXG market cap
has seen an increase of 81% in Q1 of 2022 alone.
*Paxos Gold (PAXG) Market Cap
The introduction of Gold Earner provides Australians with an easy and secure way to buy and earn competitive fixed annual yields on gold holdings. Gold Earner provides a 4% fixed annual yield, with earnings compounding daily.
Gold Earner holdings move with the real-time price of gold, and yield earnings are credited to your portfolio in gold (PAXG). This makes buying and earning yield on gold simple. Customers can add or withdraw their initial investment and yield earnings at any time, or sit back and enjoy earning gold yields that compound daily.
To learn more about Paxos Gold, read the white paper