Reply To: What is your opinion of a gold based crypto like PAXG ?

[Adam Nealis]

I don’t know enough to work out if I can trust PAXG, Tether Gold or any of the other gold stablecoins for the long term.

My attitude to gold is to

1. have some where I can hold it
2. some allocated in a vault outside the banking system in a different country than the one I live in
3. some on exchanges for liquidity and quick trades.

Something like PAXG falls into the last category. So do GLD, and other gold-backed ETFs. They are liquid and you can trade in fractions of an ounce. The trading costs are fractions of the mark-up when buying physical PMs (esp. silver).

Periodically rebalance between the three categories above.

• This reply was modified 1 month, 3 weeks ago by Adam Nealis.