Gold backed crypto

Oaks

Robin
https://www.paxos.com/paxgold/


"PAX Gold (PAXG) is a digital asset where one token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s gold vaults. Anyone who owns PAXG owns the underlying physical gold, held in custody by Paxos Trust Company."


Good investment for recession times?
 
I don't see the point. Crypto best strength is being delinked from outside resources or fiat currency. If you want to buy gold, buy physical gold. If/when SHTF, you want the actual gold as a hedge, not going through a crypto exchange, at which point it will be too late.
 

Coja Petrus Uscan

Hummingbird
Gold Member
Is pax gold a legitimately gold standard backed cryto currency?

There are or have been several gold backed cryptos. That I know of:

PAXG
Tether AU
Digix Gold

I think the last one might have closed, but it seemed legit at the time.

The best I can see on PAXG is that their claims are reiterated by exchanges like Kraken and Gemini that I assume vet their offerings.

You can get 8% interest on PAXG on Youhodlr. I think Nexo also has it a 5\6% and Crypto.com at up to 3%.
 

HKBhusal

Pigeon
There are or have been several gold backed cryptos. That I know of:

PAXG
Tether AU
Digix Gold

I think the last one might have closed, but it seemed legit at the time.

The best I can see on PAXG is that their claims are reiterated by exchanges like Kraken and Gemini that I assume vet their offerings.

You can get 8% interest on PAXG on Youhodlr. I think Nexo also has it a 5\6% and Crypto.com at up to 3%.

Got it, I guess my other question is, are there advantages to holding gold-backed tokens over holding physical gold? Or is holding physical gold preferable?

Probably a wide question, but I'm thinking more of holding it for retirement purposes, in an IRA for example.
 

Coja Petrus Uscan

Hummingbird
Gold Member
Got it, I guess my other question is, are there advantages to holding gold-backed tokens over holding physical gold? Or is holding physical gold preferable?

Probably a wide question, but I'm thinking more of holding it for retirement purposes, in an IRA for example.

If I was a US citizen one of my primary concerns would be to avoid being registered as a holder of such assets. Holding crypto-backed gold would be the best solution from a privacy standpoint, as it is possible to buy PAXG anonymously. First you'd need to buy ETH from an ATM, Paxful or other private trade. Then buy PAXG on Uniswap (https://app.uniswap.org/#/swap).

Owning PAXG would also allow you to benefit from loaning (as noted above). But you can also provide the tokens as liquidity on UniSwap (see the DeFi thread). And it looks like PAXG would earn about 18% interest p.a. (https://info.uniswap.org/pair/0x9C4Fe5FFD9A9fC5678cFBd93Aa2D4FD684b67C4C). That is paid half in ETH and half in PAXG. The risks are: if Uniswap's smart contracts are compromised or you loose your private keys.

Another potential issue is that Paxos is headquartered in The US.

It depends what your aim is. But my goal is to have a safe with a considerable amount of gold and silver. The purpose being that I will have off-grid wealth I can use if things go south, but the economy still functions.

Obviously buying physical gold will be liable to leave a paper trial.

PAXG - most private
Safe - most secure

If the government wants to come after gold again, they can just go to Paxos or the vaults. So a safe would be my bet, though I'd also be interested in holding PAXG in Uniswap given that five years would lead to you doubling your haul at current rates, if provided as liquidity on Uniswap.
 

HKBhusal

Pigeon
If I was a US citizen one of my primary concerns would be to avoid being registered as a holder of such assets. Holding crypto-backed gold would be the best solution from a privacy standpoint, as it is possible to buy PAXG anonymously. First you'd need to buy ETH from an ATM, Paxful or other private trade. Then buy PAXG on Uniswap (https://app.uniswap.org/#/swap).

Owning PAXG would also allow you to benefit from loaning (as noted above). But you can also provide the tokens as liquidity on UniSwap (see the DeFi thread). And it looks like PAXG would earn about 18% interest p.a. (https://info.uniswap.org/pair/0x9C4Fe5FFD9A9fC5678cFBd93Aa2D4FD684b67C4C). That is paid half in ETH and half in PAXG. The risks are: if Uniswap's smart contracts are compromised or you loose your private keys.

Another potential issue is that Paxos is headquartered in The US.

It depends what your aim is. But my goal is to have a safe with a considerable amount of gold and silver. The purpose being that I will have off-grid wealth I can use if things go south, but the economy still functions.

Obviously buying physical gold will be liable to leave a paper trial.

PAXG - most private
Safe - most secure

If the government wants to come after gold again, they can just go to Paxos or the vaults. So a safe would be my bet, though I'd also be interested in holding PAXG in Uniswap given that five years would lead to you doubling your haul at current rates, if provided as liquidity on Uniswap.
I assume there is no way to buy physical gold/silver to store in a physical vault, without leaving a paper trail for buying it with cash (or crypto?). Please correct me if I'm wrong.

Thanks for the insight, this is pretty much clears up some of the initial confusion for me. You definitely have done a ton of research on this. Your goal is pretty much what I'm trying to lean toward myself.
 

tom

Sparrow
I think real gold is finished as a long term investment.
How long until asteroid mining becomes feasible.
15 years perhaps.
When that happens it will be finished as a store of wealth.
 

HKBhusal

Pigeon
I think real gold is finished as a long term investment.
How long until asteroid mining becomes feasible.
15 years perhaps.
When that happens it will be finished as a store of wealth.
Very interesting... but how would asteroid material be considered a finite and usable "precious metal"/resource? What evidence is there to suggest this, anecdotal or otherwise? Yet, I get your point. Personally, I still believe that gold/silver/palladium/platinum are still decent investments for the (very) long term.
 
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