PAX Gold (PAXG) carves its niche in the cryptocurrency domain as a distinctive ERC-20 stablecoin, providing investors with fractional ownership of physical gold reserves securely stored in London vaults. Unlike conventional stablecoins, PAXG is not tethered to a fiat currency like the US dollar or euro but is directly linked to physical gold.
Intrinsic Value and Security
PAXG stands out for its intrinsic value and security, with each token equivalent to one troy ounce of a 400-ounce London Good Delivery gold bar, safeguarded in accredited gold vaults. Consequently, the value of PAXG is intrinsically tied to the real-time market value of that physical gold, ensuring that the token represents actual gold ownership and its price fluctuates with the market value of gold.
When investing in PAX Gold (PAXG), it's important to be aware of the potential risks involved. The value of PAXG is subject to daily fluctuations in the gold market, which can be influenced by factors such as economic conditions and political events. Additionally, changes in government regulations can impact the use and value of PAXG tokens and introduce new compliance requirements. There is also a risk of redemption, where PAXG tokens may not be redeemable if the custodian fails to make the underlying assets available or if the issuer becomes insolvent. PAXG is also subject to depreciation risk, meaning its value can decrease if the value of the underlying gold drops or if the administrative organisation faces issues. Finally, operational risks related to the management and security of digital assets require secure storage and management of private keys associated with digital wallets to mitigate the risk of unauthorised access or loss.
There is also a possibility that PAXG could become de-pegged from its underlying asset, which could impact its value and stability.
How To Buy PAX Gold or Add it to your Strategy
The fastest, most convenient way to purchase PAX Gold is to purchase it on ICONOMI. We check PAX Gold live prices on 10+ crypto exchanges and buy it at the best market price.
You can buy PAX Gold by adding it to your private Crypto Strategy (crypto portfolio). You can also use our recurring buy feature that tends to level out cryptocurrency price volatility effects. You can find out more about how to benefit from smaller investments at regular intervals on our blog article.
We recommend you do your own research and cryptocurrency analysis. Experienced crypto traders use fundamental and technical analysis to evaluate if PAX Gold is a good buy/sell. Fundamental and technical analyses are the two most common types of analysis used in trading traditional assets (e.g. stocks and bonds).
If you are unfamiliar with analyzing cryptocurrency prices and want to buy PAX Gold, we recommend you read the next section, as copying might be a better approach.
Add PAX Gold to your portfolio by copying a Strategy
If you are not skilled at these, consider a different approach to investing in cryptocurrencies. You can learn from and copy seasoned crypto traders on ICONOMI who regularly share their insights and manage their public Crypto Strategies. Go to the strategies page and use the “ticker” filter to find out which public Crypto Strategies have PAX Gold in their structure.