Gold has made consecutive new all-time highs year-to-date, drawing investors’ attention and fueling what was already a significantly increased demand. Finbold selected two tokenized gold cryptocurrencies to invest in and gain exposure to the leading commodity
As of writing, the TradingView index for gold marks an all-time high of $2,431 per ounce. Furthermore, gold contracts closed the week – on April 12, Friday – at a valuation of $2,343 per ounce. Looking ahead, Bloomberg Intelligence‘s commodity expert forecasts gold could reach $3,000 per ounce.
Gold price index. Source: TradingView
However, investing in gold can sometimes be expensive and limiting, according to different geographic locations, or investment budgets.
Tether Gold (XAUt) 1-month chart. Source: Finbold
PAX Gold (PAXG)
Pax Gold (PAXG) is a gold-backed cryptocurrency issued by Paxos, a regulated blockchain infrastructure. The company is mostly known for serving as Binance‘s dollar-stablecoin (BUSD) controller, despite having its own synthetic dollar, the USDP.
Interestingly, PAXG trades with a nearly 2% premium against the index, priced at $2,385 with ongoing volatility. Paxos’s gold token has a $435 million capitalization, ranked in the 159th position according to the CoinMarketCap index.
Pax Gold (PAXG) 1-month price chart. Source: Finbold
The HSBC also has its synthetic gold asset, although only available for the bank’s customers.
In conclusion, Tether and Paxos tokenized gold cryptocurrencies are the most solid tokens to accessibly invest in and gain exposure to the precious metal through blockchain infrastructure in a permissionless manner.
Nevertheless, the tokenized versions of the commodity have significant risks to consider and are prone to these entities’ honesty and health. Investors must do their due diligence and understand these risks before making financial decisions.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
