Is PAX Gold a good investment?

Is PAX Gold a good investment? Are you looking for a new investment opportunity to diversify your crypto portfolio? PAX Gold can be an investment option but you have to understand what it is, how it works, and its pros and cons as an investment option.

What is PAX Gold?

PAX Gold is a unique digital asset that provides investors with an opportunity to own fractional shares of physical gold. Each PAX Gold token represents one fine troy ounce of London Good Delivery gold, stored in secure vaults around the world.

Is PAX Gold a good investment? PAX Gold is a fully backed digital gold. This means owning 1 PAXG is the same as 1 OZT of Physical London Good Delivery Gold Bar.
Is PAX Gold a good investment? PAX Gold is a fully backed digital gold. This means owning 1 PAXG is the same as 1 OZT of Physical London Good Delivery Gold Bar.

Just as Bitcoin, Ethereum, and other crypto coins can be traded on various trading platforms such as,,,, etc. You can also trade PAXG as well or you can hold it and sell it when the price of Gold appreciates.

Is PAX Gold a good investment?

PAX Gold is a good investment because it is a digital asset that is actually backed by real, physical gold stored in a secure vault; and since its value is linked to gold prices, it may provide a hedge against inflation or market volatility.

PAXG aims to combine the stability of gold with the ease and accessibility of digital assets. The value of PAX Gold is tied to the price of gold, and each token is backed by one troy ounce of a 400 oz London Good Delivery gold bar.

Investing in PAX Gold also depends on what you want to achieve. If you want the high fluctuations associated with crypto coins that have no assets to back them but are merely valued based on speculation, PAXG is not the right coin for it. This is because PAX Gold is a stable coin and its price fluctuation is based on the price of actual gold.

If you want a crypto asset to diversify your portfolio and hedge against market volatility, then PAX Gold is a good investment option. Also, if you want to invest and trade precious metals online, PAXG can be a good investment option.

Gold is often considered a safe-haven asset and can provide a hedge against inflation or economic downturns. However, its price can also be volatile, and its performance may not always align with other forms of investment.

What makes PAX Gold a good investment?

PAX Gold is a good investment because of its intrinsic value, as it’s backed by actual physical gold bullion. This makes it an appealing investment option for those who want to diversify their crypto portfolio and hedge against market volatility.

For every single PAX Gold that is created, 1 OZT of physical gold must be sourced and secured in vaults in some specific locations Worldwide. The secured gold bars are audited regularly to ensure their authenticity and purity before being tokenized on the Ethereum blockchain.

Chart showing the Price of PAXG over the last 1 year (from July 2022 to 24th June 2023). Source: CoinDesk

When PAX Gold is compared to the prices of Gold over the years, Price Chart has a similar pattern and fluctuations. This shows the price of gold matches the price of PAX Gold. The price of actual physical GOLD for the past 1 year can be seen in the image below.

Price of Gold of the past year. Source: Google Finance

Investors can purchase or sell PAXG tokens directly through Paxos, the company behind this innovative asset. Transactions are settled instantly on the Ethereum blockchain network, making it easy for investors to buy or sell at any time.

PAX Gold offers a unique investment opportunity for those looking to add diversity to their portfolio while enjoying some security provided by investing in precious metals like gold!

Reasons why PAX Gold is a good investment

  1. It is a good investment because owning PAX Gold means you have actual physical gold stored in Brink’s vaults, providing investors with a tangible asset that can potentially hold its value during economic downturns.
  2. PAX Gold is also a good investment because it offers fractional ownership of gold which allows for more flexibility when it comes to investing in this precious metal.
  3. You can trade it as collateral to secure crypto loans on platforms such as Aave, Cake DeFi, YouHodler, and Unchained Capital
  4. It offers transparency to investors because every investor can verify the existence and purity of the physical gold by auditing reports from independent third-party auditors.

Disadvantages of owning PAX Gold as an investment option

Despite these benefits, there are also some drawbacks to consider before investing in PAX Gold.

There are fees associated with buying and selling PAX Gold tokens which can eat into potential profits.

The most key disadvantage is that the price of gold can be volatile and unpredictable leading to fluctuations in the value of your investment.

Also, note that owning physical gold through an Exchange-traded fund (ETF) like PAXOS means you don’t actually possess the physical asset itself; instead, you own shares representing it. This may not appeal to those who want complete control over their investments or prefer having possession of their assets.

Last Updated on November 2, 2023 by Nansel Nanzip Bongdap
Entrepreneur at Financial Falconet | Author's Bio Page

Nansel is a serial entrepreneur and financial expert with 7+ years as a business analyst. He has a liking for marketing which he regards as an important part of business success.
He lives in Plateau State, Nigeria with his wife, Joyce, and daughter, Anael.