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

[bobcallen]

I’m wanting to get more of my savings out of banking system onto blockchain, for safety. Is PAXG a reasonable choice for gold backed currency. I’m new here and wondering if there has been an article written on the subject.

Thanks
Bob

[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 6 months, 2 weeks ago by Adam Nealis.

[tccadmin]

We’re actually starting to build out gold-backed crypto directory over on Dollar Collapse. So far we’ve looked into Lode (seems to have liquidity and execution issues), and we’re about to publish an overview of Tether Gold.

The biggest problem with gold-backed cryptos (and vaulted gold) is regulatory. So far I haven’t found one where you could frictionless buy some, and then when you need to, redeem it out in physical some place other than the jurisdiction in which you’ve been KYC-ed.

[Author]

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