PAXG -Digital asset backed by physical gold

Excerpts from CareYourPresent – a crypto enthusiast

Buy real physical Gold but store where?

Many people like gold and believe that this is the real asset with value rather than the artificial fiat currencies created by various government. Gold is a commodity that dates back thousands of years as a store of value and a means of exchange even until today.

However, one very big problem with gold is storage. How do you store something worth so much at home? What if fire broke out? What if a bulger enters your house and steal it?

Of course, you can put in fireproof safe boxes at your home, but is it still safe? Do you feel safe? Alternatively, people put in safe deposit box with reputable companies like CISCO. This is not cheap too, it cost few hundred dollars per year, hence whatever you put in the box better worth the amount.

Where to buy physical gold

The next question is where you can buy gold? In Singapore, most people will go to the bank UOB. This is because UOB is the only bank in Singapore that offers (1) the sale and purchase of physical gold bars, gold bullion coins etc.

You do not incur GST if you purchase gold through UOB as it qualifies as IPM (Investment Precious Metals). However, all these options either doesn’t come cheap if you ask the bank to hold the gold for you OR back the same problem of how to store the physical gold?

Best of both world: The Marriage of Cryptocurrency and real physical gold in the form of PAXG

What is this? So good? The answer is to buy PAXG, digital asset backed by real physical gold. Pax Gold (PAXG) is a digital asset on the Ethereum Ecosystem.

Each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults. If you own PAXG, you own the underlying physical gold, held in custody by Paxos Trust Company.

If you refer the table (see below) in PAXG website, there are numerous benefits to this token. The most key advantage is PAXG is ERC-20 token, it can be easily transfer, moved around anywhere around the world within a very short time and 24/7.

The next key advantage is the fee is low and it can redeem for the real gold via Paxo platform. Hence, storage and fee will no longer be an issue!

Where to buy PAXG?

How do I buy this? For those who understand and buy crypto before, you should be able to buy it easily. For those who are new to crypto, let me introduce a good site to you – Coingecko (you can refer to this post which I have shared about this site previous).

If you go to site, you can see all the places where you can trade this coin. From the table, you can buy it from major CEX or directly at DeFi site at Uniswap.

Of course, one very key important thing is not your key not your coin. Regardless of where you buy it, please send it and keep in your cold wallet such as Ledger. If you want to find out more about wallets, please read my previous post (Guide – Managing your Crypto Wallets).

What gold do I owned if I have PAXG?

For those who have already bought PAXG, you can check the details via the PAXG site. Every Pax Gold token is backed by an ounce of allocated gold.

Use this tool to lookup the serial number and information about your gold. Scroll down to the middle of this page, you should be able to see this box to key in your Ethereum Address. However, do note that this is only for PAXG held on Paxos, not in custodial exchanges/wallets.

 

Is this digital asset safe?

Paxos Gold is backed by real gold reserves held by Paxos, company in New York. Each PAXG token is linked to a 1:1 ratio to one troy ounce (t oz) of a 400-ounce London Good Delivery gold bar stored at Brinks Security vaults in London.

The Paxos-backed cryptocurrency, PAXG, is backed by the London Bullion Market Association (LBMA) certified gold bars and may be redeemed for actual bullion.

Conclusion

For investor who believe in gold as a store of value or for investment, and regardless of if you are familiar with Crypto or even new to Crypto, do consider buying some gold using PAXG, especially given the turmoil macros conditions now with increasing likelihood of more wars.

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